November 18, 2011

 

Cargill gets approval to buy Provomi

 

 

Cargill gets green light to purchase animal feed producer, Provomi from private equity firm Permira for EUR1.5 billion (US$2.02 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.

 

The acquisition will reinforce Cargill's dominant position in the animal nutrition business.