Trade Resources Company News Ec Approved The Proposed Acquisition of The Cocoa Ingredients Division of Petra Foods

Ec Approved The Proposed Acquisition of The Cocoa Ingredients Division of Petra Foods

The European Commission (EC) has approved the proposed acquisition of the Cocoa Ingredients division of Singapore-based Petra Foods by Swiss confectionery firm Barry Callebaut for $950m.

The investigation conducted by the Commission confirmed that customers would still have sufficient alternative suppliers in all markets concerned and that the merged entity would not lead to a significant deterioration of competition in the markets concerned.

It evaluated the competitive effects of the proposed acquisition in the markets for the procurement of cocoa beans and the production and sale of semi-finished cocoa products including cocoa liquor, cocoa butter and cocoa powder. The EC also examined the vertical relationships between these activities and the market for industrial chocolate, where Barry Callebaut has its presence.

Therefore, the EC concluded that the transaction would not raise competition concerns.

The evaluation found that the cocoa product markets are concentrated by international players such as ADM and Cargill.

The proposed acquisition is expected to expand Barry Callebaut's cocoa sourcing and processing capabilities, while strengthening its presence in the emerging markets.

Petra Foods' cocoa ingredients division is a leading cocoa products supplier in Asia and it has a sales volume of 265,000 tons globally. It has seven processing plants in Malaysia, Indonesia, Thailand, Brazil, Mexico, Germany and France, with total bean grinding capacity of 405,000 tons, and sales offices in Singapore, the Netherlands and the US.

Source: http://regulatoryandfoodsafety.food-business-review.com/news/europe-approves-barry-callebauts-acquisition-of-petra-foods-cocoa-ingredients-division-100613
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Europe Approves Barry Callebaut's Acquisition of Petra Foods’ Cocoa Ingredients Division