Brussels, 24/02/2015 (Agence Europe) - On Tuesday 24 February, the European Commission opened an in-depth investigation to determine whether the planned acquisition of the 'industrial chocolate' business of Archer Daniels Midland (ADM) by Cargill is in line with European law.
These two American companies supply industrial chocolate in liquid or solid form for processing, as well as fat-based coating and filling products. Their clients include producers of biscuits, ice cream and chocolate confectionery.
The transaction could raise competition concerns regarding the sale of industrial chocolate to clients in Germany and the United Kingdom, the European institution states in a press release. The company resulting from the planned transaction would face competition from just Barry Callebaut as a large-scale competitor on markets which are already concentrated. This would mean that price increases could be possible.
The proposed transaction does not include the 'semi-finished chocolate products' activities (cocoa liquor, cocoa butter and cocoa powder) of ADM. A final decision will be taken by Wednesday 8 July 2015. (Mathieu Bion)