Dive Brief:
- The EU has began a formal probe into the proposed merger of Mondelez International's coffee brands with those of rival D.E Master Blenders 1753 - a deal that would create the second-largest coffee company on earth, trailing only the brands of Nestle SA.
- Regulators said that concessions offered by the two companies earlier this month to lessen competitive worries were "insufficient."
- The EU said it would rule on the merger, which would create a $7 billion per year company dubbed Jacobs Douwe Egberts, by May 6.
Dive Insight:
It's unlikely that European regulators will actually block the deal. That's not how the EU tends to work. Rather, when competitive concerns are raised, regulators push for a higher level of divestiture. That's what's likely to happen here.