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EU regulators extend Cargill, ADM chocolate deal review to July 23
[BRUSSELS] European Union antitrust regulators have extended their investigation into Cargill's planned takeover of Archer Daniels Midland's chocolate business to July 23 after the companies asked for more time.
The Commission opened an extensive probe last month, worried that the US$440 million deal, which is designed to expand the commodity trader's production capacity in North America, may push up prices. The previous deadline for its decision was July 8.
The EU competition watchdog said it was concerned about the supply of industrial chocolate to customers in Germany and Britain, where Cargill, ADM and Barry Callebaut AG were the main suppliers to customers.
Companies typically offer concessions such as asset sales to ease competition concerns unless they can convince the regulator that their deals would not have an negative impact.