Commission allows more time to assess Cargill’s ADM chocolate buy
The European Commission has extended its deadline to investigate Cargill’s proposed acquisition of ADM’s chocolate business.
The EU regulator was due conclude its probe on 8 July 2015, but has allowed an additional 10 days.
A preliminary investigation by the Commission cited possible competition concerns in Germany and the UK, where Cargill and Barry Callebaut are the main suppliers of industrial chocolate. It is worried the deal could lead to price increases.
Cargill announced it was to acquire all six of ADM’s chocolate plants as well as the Ambrosia, Merckens and Schokinag brands for $440m in September last year.
The deal excluded ADM’s capacity to produce semi-finished chocolate products such as cocoa butter and powder. This part of the business was later sold to Olam.