Commission Clears Cargill’s Acquisition of German Chocolate Manufacturer KVB

After examining the transaction, the Commission has concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

5/3/2011 --- The European Commission has cleared under the EU Merger Regulation the proposed acquisition of sole control over the assets of German chocolate manufacturer Schwartauer Werke GmbH & Co. KG Kakao Verarbeitung Berlin (KVB) by the US based company Cargill. After examining the transaction, the Commission has concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

Cargill is active in the international production and marketing of food, agricultural and risk management products and services.

KVB produces, sells and distributes various semi-finished cocoa products (cocoa liquor, cocoa powder and cocoa butter) and industrial chocolate.

The Commission examined the competitive effects of the proposed acquisition in the markets for the procurement of cocoa beans, semi-finished cocoa products (cocoa liquor, cocoa butter, cocoa powder) and industrial chocolate, where both parties are active. The Commission's investigation confirmed that the merged entity would continue to face competition from a number of other strong competitors. After the transaction, customers would still have sufficient alternative suppliers available on all markets concerned.

The Commission therefore concluded that the proposed acquisition would not raise competition concerns.

The transaction was notified to the Commission on 22 March 2011.