Brussels, 10/11/2011 (Agence Europe) - On Thursday 10 November, the European Commission opened an in-depth investigation into the proposed acquisition of control over ED&F MAN (United Kingdom), Europe's second largest sugar and molasses producer, by Südzucker, a German company that is Europe's largest sugar and molasses producer. The parties submitted remedies, but these could not remove the Commission's initial concerns.
Through this operation, of which the Commission was notified on 19 September, Südzucker intends to acquire part of the share capital of ED&F MAN, as well as veto rights that together would give it sole control over the UK sugar trader. Preliminary investigation has shown that, in particular in Italy and Greece, the acquisition would lead to high combined market shares in the already concentrated market for the supply of refined sugar. In addition, it would remove a strong alternative supplier of molasses in several member states, in a market where alternative suppliers are scarce and barriers to entry high. Another problem could also be Südzucker competitors' access to raw cane sugar, as EDFM also imports raw cane sugar into the EEA. This ingredient is an essential input for the production of white sugar. The Commission has now until 23 March 2012 to check whether the operation will lead to price rises for end consumers and to come to a final decision. (FG/transl.fl)