Cargill gets green light to buy animal feed producer Provimi
US agribusiness giant Cargill secured EU regulatory approval on Thursday to purchase animal feeds producer Provimi from private equity firm Permira for €1.5 billion.
The European Commission said that an investigation had established that the deal – to buy Provimi’s holding company KoroFrance – would not create competition issues.
"The investigation showed that the horizontal overlaps between the activities of Cargill and KoroFrance in animal compound feed and feed mixes would not raise competition concerns given the relatively limited combined market position of the merging parties and the presence of a sufficient number of alternative suppliers," the EU’s executive said in a statement.
Cargill’s new animal nutrition business will be led by Ton van der Laan, previously chairman and group chief executive officer of Provimi, who joins Cargill as a corporate vice president, and Cargill’s animal nutrition business leader, Joe Stone.
The acquisition will reinforce Cargill’s dominant position in the animal nutrition business.
(Source: Reuters)
