After already receiving regulatory approval from the U.S., Cargill Inc. has been granted conditional approval from the European Commission for its $440 million purchase of Archer Daniels Midland’s (ADM) chocolate business after a five month process. Having gained clearance from the EU, the regulatory approval process to finalize the deal is complete.

 

The acquisition is a major step toward Cargill achieving its chocolate growth strategic goal to be a leading global player in the cocoa and chocolate sectors.

 

“The new organization will deepen our service to chocolate customers and expand our footprint and production capability significantly,” says Bryan Wurscher, president of Cargill Cocoa and Chocolate, North America. “Customers will benefit from a combined business with a broad range of high quality cocoa and chocolate products for confectionery, bakery, dairy and other applications.”

 

Because of competition concerns, the European Commission’s approval is conditional in nature, requiring that Cargill divest ADM’s industrial chocolate production facility in Mannheim, Germany. Cargill has agreed that the facility will be held separately as an independent entity with its own temporary management team until a buyer has been secured.

 

Upon closing of the deal, three chocolate, liquor, and compound production facilities in North America located in Milwaukee, Wisconsin, Hazleton, Pennsylvania, and Georgetown, Ontario, and three chocolate and compound production facilities in Europe, located in Liverpool, England, Manage, Belgium, and Mannheim, Germany, as well as more than 650 employees will be transferred to Cargill. Cargill will also gain control of the Ambrosia, Merckens, and Schokinag brands.