Merger investigation deadline for Cargill and ADM Cocoa extended

European Union authorities have extended by 10 working days the deadline given for the in-depth investigation into the merger of Cargill and ADM Cocoa, up to July, 23. 

The previous deadline for its decision was July 8.  The EU has announced in January that it is to investigate the USD 440 million Cargill Inc’s takeover of Archer Daniels Midland Co’s chocolate business. The European authorities are looking into whether the transaction may lead to a concentration of industrial chocolate in the EU region and to higher price for sweets. 

It opened its in-depth investigation to assess whether the proposed acquisition 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.
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.
Companies typically offer concessions such as asset sales to ease competition concerns unless they can convince the regulator that their deals would not have a negative impact.