8 May 2006

Commission clears three-to-two merger

The European Commission has unconditionally cleared the acquisition by Cargill of the food ingredients business of Degussa (DFI). The transaction would result in substantial horizontal overlaps in the markets for lecithin, an emulsifier that is widely used in the food industry. However, the Commission concluded, following an in-depth investigation, that the markets were dynamic and that important suppliers to the parties were increasingly selling directly to customers and establishing their own distribution networks.RBB provided economic advice to the merging parties, working with Slaughter & May, counsel to Cargill, and Freshfields, counsel to Degussa.

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