EC to probe Degussa/Cargill food ingredients deal

14 December 2005 17:56  [Source: ICIS news]

LONDON (ICIS news)--The European Commission (EC) has called in for detailed examination plans by Degussa to sell its food ingredients business to US food and agriculture group Cargill.

The German specialty chemicals company said on Wednesday that the in-depth examination could take up to 90 working days but does not prejudice a final decision.

"Degussa continues to be confident that the detailed examination will dispel the EU Commission's initial reservations and that the transaction will be successfully concluded," it said.

Degussa said in September that it had agreed to sell the business to Cargill for Euro540m ($670m).

The business has an annual turnover of around Euro440m, employs 2,088 people and had been up for sale since August 2004. It consists of texturant systems and flavours business lines. Most of the workforce are employed at the unit's 15 production sites in the US and France.

Cargill beat off a challenge from Israeli flavours and fragrances company Frutarom to the Degussa food ingredients business.

By: Hilde Ovrebekk
+44 20 8652 3214

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