FDBusiness.com

European Commission Has Concerns About Cargill and ADM’s Proposed Chocolate Merger

 Breaking News
  • Continued Growth by Marston’s Marston’s, a leading British pub operator and independent brewer, has reported a 4.7% rise in underlying revenue to £553.1 million for the 26 weeks ended 30 March 2019, reflecting strong growth in its brewing business, the contribution from new openings and pub acquisitions and positive like-for-like sales in its pub businesses. Underlying operating profit at [...]...
  • UK Ethical Food and Drinks Sales Hit £8.2 Billion British consumers are increasingly eating with a conscience as latest research from Mintel reveals that last year the nation spent £8.2 billion on ethical food and drink, including organic, Fairtrade, Rainforest Alliance and Marine Stewardship Council (MSC) certified products. Over the past five years, sales of ethical food and drink have shot up by 43% [...]...
  • UK Restaurant Closures Accelerating as High Street Pressures Mount The number of restaurants in Britain fell by 2.8% in the year to March 2019, the latest edition of the Market Growth Monitor from CGA and AlixPartners reveals — with high streets in the south of England, excluding London, hit especially hard by closures. The figure equates to net closures of 768 restaurants over 12 [...]...
  • European Commission Clears Acquisition of European and Thai Businesses of BRF by Tyson Foods The European Commission has approved, under the EU Merger Regulation, the $340 million acquisition of the European and Thai Businesses of BRF of Brazil by Tyson Foods of the US. BRF’s European and Thai businesses are active throughout the poultry supply chain in Thailand, and import into and further process poultry meat in the European [...]...
  • Samworth Brothers Launches New Food-To-Go Business Samworth Brothers, the family-owned British food group, has launched a new food-to-go business and delivery service – Fresh Food For Now Company. The new venture marks the evolution of the existing Ginsters van operation into a fresh new business, offering vendors a complete food-to-go solution with an extended range of brands and products to cater [...]...

European Commission Has Concerns About Cargill and ADM’s Proposed Chocolate Merger

European Commission Has Concerns About Cargill and ADM’s Proposed Chocolate Merger
February 25
09:52 2015

The European Commission has opened an in-depth investigation to assess whether the proposed acquisition of the industrial chocolate business of Archer Daniels Midland (ADM) by Cargill is in line with the EU Merger Regulation. Both US-based companies supply industrial chocolate as well as fat-based coatings and fillings.

Industrial chocolate, which is sold in liquid or solid form, is used by customers in the food processing industry to produce end-consumer products. Customers of industrial chocolate include producers of biscuits, ice-cream, chocolate confectionery and other end-consumer products.

The Commission’s preliminary investigation showed potential competition concerns in the supply of industrial chocolate to customers in Germany and the UK. The Commission found that Cargill, ADM and Barry Callebaut are the main suppliers of industrial chocolate to customers in these markets. The investigation also revealed that several smaller competitors for the supply of industrial chocolate have a more limited presence and do not pose a sufficient competitive constraint on the parties. The proposed transaction could eliminate an important competitor and reduce the choice of suitable suppliers in already concentrated markets, which could lead to price increases.

The proposed transaction does not include the activities of ADM in semi-finished chocolate products such as cocoa liquor, cocoa butter and cocoa powder.

The Commission now has 90 working days, until 8 July 2015, to investigate the proposed acquisition in-depth and determine whether these initial concerns are correct. The opening of an in-depth inquiry does not prejudge the final result of the investigation.

The transaction was notified to the Commission on 19 January 2015.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
  • June 25, 2019BevExpo 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements