Dive Brief:
- The European Commission announced that after its investigation, regulators had conditionally approved Cargill's $440 million acquisition of Archer Daniels Midland Co's global chocolate business. With the approval from the U.S. Department of Justice, Cargill has all of the approvals it needs for the regulatory approval process, according to a news release.
- The commission's condition was that Cargill must divest ADM's industrial chocolate plant in Mannheim, Germany, to a "suitable purchaser," Reuters reports.
- The condition came as a result of concerns about reduced competition in certain markets following the deal, which could pose a risk that customers might see higher prices.
Dive Insight:
"After closing of the transaction, three chocolate, compound and liquor production sites in North America - Milwaukee (Wis.), Hazleton (Penn.) and Georgetown (Ontario) and three chocolate and compound production sites in Europe - Liverpool (U.K.), Manage (Belgium) and Mannheim (Germany) will transfer to Cargill together with the Ambrosia®, Merckens® and Schokinag® brands," according to a news release.
Per the EU's approval, however, Cargill will divest the Mannheim facility, which will "be kept as a separate entity with its own interim management until an agreement with a prospective buyer has been made," per the release. ADM's cocoa processing facilities are not included in the deal, which will instead be purchased by Olam International.