European Commission Approves Sale of ADM's Chocolate Business

By Matthew Cowley

The European Commission said Friday it has granted conditional clearance for Cargill Inc. to buy Archer Daniels Midland's (ADM) chocolate business in Europe, the last regulatory hurdle for the deal to be completed.

Cargill and ADM first announced the deal in September 2014, when they said Cargill would pay $440 million for the chocolate business.

It is part of ADM's plan to exit the cocoa and chocolate business altogether as it looks to focus on other businesses that are less volatile. In December, in a separate transaction, it agreed to sell its global cocoa business to Olam International Limited for $1.3 billion.

The European Commission demanded that Cargill sell the industrial chocolate production facility in Mannheim, Germany, to ease competition concerns. Cargill said in a statement that the unit will be kept as a separate entity with its own interim management until it can be sold.

Once the deal is completed, Cargill said it will take control of three chocolate, compound and liquor production sites in North America and three chocolate and compound production sites in Europe. The Ambrosia, Merckens and Schokinag brands will join Cargill's existing portfolio of high quality chocolate brands, Cargill said.

Write to Matthew Cowley at [e-mail]

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