Irish Competition Authority Clears Kerry Acquisition of Cargill Flavors Business

The Authority has formed the view that the acquisition will not lead to a substantial lessening of competition in any markets for goods or services in the State.

Oct 24 2011 --- The Irish Competition Authority has cleared the proposed transaction whereby Kerry Group plc would acquire sole control of the flavours business of Cargill Incorporated, with the exception of that part of the business which manufactures fruit juice compounds. The transaction was notified by the parties under the Competition Act 2002 on 26 September 2011.

The Authority has formed the view that the acquisition will not lead to a substantial lessening of competition in any markets for goods or services in the State. The Authority will publish a public version of the reasons for its determination on its website no later than 18 December 2011 after allowing the parties the opportunity to request that confidential information is removed from the published version.

Kerry is a public limited liability company incorporated in Ireland with its registered address at Prince’s Street, Tralee, Co Kerry. Kerry is active in the manufacture and sale of food ingredients, flavours and flavour ingredients. In the State and the United Kingdom it is primarily active in the manufacture and sale of consumer foods. Its branded consumer foods include Denny, Dairygold, Galtee, Calvita, Roscrea, Kerrymaid, Cheestrings and Richmond. It has customers worldwide in the food and beverage industry.

The flavours business of Cargill is active internationally in the manufacture and sale of flavours, aroma chemicals and fruit juice compounds and associated research and development. It has no physical presence in the State but is active in the sale of flavours and aroma chemicals to customers located in the State and Northern Ireland. These flavours and aroma chemicals are manufactured by Cargill in the U.S.A and France.

Mid July, Cargill announced the intention to sell its global flavors business to Kerry, the ingredients & flavors and consumer foods group. Both parties entered into exclusive negotiations which culminated in the signing of a definitive sales agreement in September. Cargill Flavor Systems with annual revenues of approximately US$200m is being acquired by Kerry for a consideration of US$230m subject to closing adjustments.