EC approved the acquisition of ADM’s cocoa business by Olam

 
The European Commission has approved the acquisition of Archer Daniels Midland’s (ADM) cocoa business by Olam International. The deal, worth USD 1.3bn, will give Singapore-based Olam 16 per cent of global cocoa processing capacity and over 20 per cent of bean output.

Following changes at the top of the cocoa tree, Olam joins Cargill and Barry Callebaut as leading suppliers of cocoa for the ever-buoyant chocolate business.

A statement from the EC concluded: “The Commission concluded that the proposed acquisition would raise no competition concerns, given the companies’ moderate combined market positions and the presence of a number of strong players supplying beans and cocoa products in the European Economic Area (EEA),” a statement said.

The companies’ activities overlap in the markets for the procurement and supply of cocoa beans, and the supply of cocoa liquor, butter and powder.

As part of the deal, Olam will become a leading supplier of cocoa liquor, powder and butter, with eight factories from Ivory Coast to Singapore.