EU clears ADM purchase of Unilever unit
Archer Daniels Midland to purchase food giant Unilever's edible oil
refining subsidiary VDBO.
The European Commission on Friday approved plans by US company Archer Daniels Midland to purchase food giant Unilever's edible oil refining subsidiary VDBO.
The EU concluded this week that the transaction - which broadens ADM's activities on the seed oil and bakery fat markets - did not raise any competition concerns.
"The Commission examined the impact of the acquisition on the markets for bulk refined seed oil, packed refined seed oils, and bakery fats," said the EU body in a statement on Friday.
"It concluded that the operation will not lead to any competition concerns and has therefore decided not to oppose it."
VDBO, part of Unilever's Bestfoods subsidiary, runs a seed oil refinery in Purfleet, Essex. In addition to that, VDBO will sell bakery fats processed and packed by another division of Unilever.
Unilever is selling the production unit subsidiary to focus on marketing its key margarine and spreads brands while ADM is buying to complement its existing portfolio. ADM will integrate the acquisition into its Pura Foods subsidiary.
Archer Daniels Midland is one of the world's largest processors of soybeans, corn, wheat and cocoa, employing 24,000 people in more than 260 processing plants worldwide.
