The European Commission (EC) has approved Cargill's proposed $440m acquisition of Archer Daniels Midland’s (ADM) chocolate business in Europe.
Cargill had agreed to acquire ADM's chocolate business last year.
In February this year, the EC launched an in-depth investigation into the acquisition over concerns of higher chocolate prices. The European Union's executive arm believed that the deal may reduce the choice of suitable suppliers in already concentrated markets, which may result in price increases.
The deal includes the acquisition of ADM's three chocolate, compound and liquor production sites in Wisconsin, Pennsylvania, and Ontario, as well as three chocolate and compound production sites in the UK, Belgium and Germany.
ADM's chocolate production facility in Germany will be operated as a separate entity with its own interim management until an agreement with a prospective buyer has been made.
In addition, ADM's Ambrosia, Merckens and Schokinag brands will be added to Cargill's existing product portfolio.
As part of the acquisition, Cargill will gain over 650 new employees.
The approval from the EC, along with the approvals granted earlier by the US Department of Justice, completes the regulatory approval process for the deal.
The combined business with a wide range of cocoa and chocolate products will cater to increasing consumer demand in confectionery, bakery, dairy, and other industries.
