Cargill has secured approval from EU regulators to buy animal feeds producer Provimi from private equity firm Permira, Reuters reported. The deal is valued at 1.5 billion euro ($2 billion).
(Reuters) – U.S. agribusiness giant Cargill secured EU regulatory approval on Thursday to purchase animal feeds producer Provimi from private equity firm Permira for 1.5 billion euros.
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.
The acquisition will reinforce Cargill’s dominant position in the animal nutrition business.