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Commission clears Cargill acquisition of Brazilian pork and poultry producer

by 5m Editor
29 October 2004, at 12:00am

EU - The European Commission has cleared, under the European Union’s Merger Regulation, the proposed acquisition of the Brazilian pork and poultry producer Seara Alimentos, S.A. by Cargill Inc. of the United States.

Although it has an impact in Europe, the acquisition poses no serious competition concerns.

On 27 September, the Commission received notification under the Merger Regulation of Cargill’s agreement to acquire the majority of shares of Seara Alimentos, S.A. (Seara). Both companies are active in the supply of chicken parts in the European Economic Area (EEA) as well as worldwide.

The principal area of competition between the parties relates to the supply of boneless chicken breast meat products in the EEA. However, the companies overlap only to an insignificant degree and will continue to face competition from other important suppliers.

Cargill is also active in the supply of further processed chicken products (e.g., kievs, goujons, chicken nuggets) for which boneless chicken breast meat is used. But this aspect of the transaction did not give rise to any type of foreclosure concerns either, since the integration of Seara into Cargill’s will not have a significant impact on the ability of other industrial processors to obtain boneless chicken breast meat.

The Commission has, therefore, granted regulatory clearance to the transaction in the EU.

Source: European Commission - 29th October 2004

5m Editor