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EU gives conditional clearance to ADM/Cargill deal

20 Jul 2015

The European Commission has granted conditional clearance for Cargill to acquire ADM’s  chocolate business in Europe. Together with the approvals granted earlier by the US Department of Justice, this completes the regulatory approval process for the global deal. The acquisition underlines Cargill’s commitment to meeting customer needs, the company said, and constitutes a milestone for its […]

EU gives conditional clearance to ADM/Cargill deal

m-mergers-acquisitions-word-cloud-26295380The European Commission has granted conditional clearance for Cargill to acquire ADM’s  chocolate business in Europe. Together with the approvals granted earlier by the US Department of Justice, this completes the regulatory approval process for the global deal.

The acquisition underlines Cargill’s commitment to meeting customer needs, the company said, and constitutes a milestone for its chocolate growth strategy. It is, said Cargill, strengthening its position as a leading player in the cocoa and chocolate industry. The new organisation will deepen its service to chocolate customers, the company continued, and expand its footprint and production capability significantly. Customers will, Cargill went on, benefit from a combined business with a broad range of high quality cocoa and chocolate products for confectionery, bakery, dairy, and other applications.

Cargill said it is looking forward to soon be welcoming more than 650 new colleagues and to bring together people with a deep passion, experience and commitment to producing excellent chocolate in our extended chocolate operations.

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.

Addressing the European Commission’s competition concerns, Cargill has agreed to divest ADM’s industrial chocolate production facility in Mannheim, Germany. The facility will be kept as a separate entity with its own interim management until an agreement with a prospective buyer has been made.

 

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