Dive Brief:
- Reuters reports that the deadline for the antitrust investigation of Cargill Inc's proposed acquisition of Archer Daniels Midland Co's chocolate business will be pushed back from July 8 to July 23.
- The European Commission agreed to extend the deadline after the two companies requested an extension.
- According to BakingBusiness.com, the commission said when it launched its investigation, “The proposed transaction could eliminate an important competitor and reduce the choice of suitable suppliers in already concentrated markets, which could lead to price increases.”
Dive Insight:
The original news that Cargill would acquire ADM's chocolate business in September was met by concerns from EU regulators in February, which is where the companies are now, determining a solution to appease regulators before the deadline. The commission's chief concern is that the merger could reduce competition and increase prices in the chocolate markets of Germany and Britain, where both companies are already among the top chocolate suppliers.