Cargill’s German Chocolate Acquisition Receives Green Light
The European Commission has cleared Cargill’s acquisition of KG Kakao Verarbeitung Berlin (KVB), an integrated chocolate company based in Germany, for an undisclosed sum. The acquisition marks a significant step in Cargill’s chocolate growth strategy in Europe, strengthening its position in Germany, the largest chocolate market in Europe, and creates opportunities to expand into new markets.
KVB’s two plants in Berlin will complement Cargill’s existing German cocoa and chocolate facilities in Klein Schierstedt and Hamburg.
The European Commission examined the competitive effects of the proposed acquisition in the markets for the procurement of cocoa beans, semi-finished cocoa products (cocoa liquor, cocoa butter, cocoa powder) and industrial chocolate. The Commission found that the merged entity would continue to face competition from a number of other strong players and customers would still have sufficient alternative suppliers available.
