EU Clears Cargill Purchase of BCA

BRUSSELS - Apr 1/04 - SNS -- The European Commission has approved Cargill Plc's proposed purchase of the United Kingdom's BCA. The transaction involved a change from joint to sole control of BCA, currently a 50/50 joint venture between Cargill and SCB Holdings (Sandy) Ltd (Banks).

BCA is active in agricultural merchanting in the UK, and comprises the formerly independent UK agricultural merchanting businesses of Cargill and Banks.

Cargill is, amongst other, active internationally in commodity trading and processing, the marketing of non-branded food ingredients to the food and beverage industry, and the production of agricultural inputs to farmers.

The EU said since BCA comprises the UK-businesses of both Cargill and Banks there were no horizontal overlaps. Cargill is, however, active in the markets for oilseed meal and crude seed oil operations, which are vertically related to BCA's activities in oilseed rape purchasing. However, no foreclosure effects were found.

In any event, considering that BCA already was under joint control of Cargill, the Commission found that Cargill's acquisition of sole control of BCA did not appear to have any impact on either the structures of the relevant markets, or the existing relationship between Cargill and BCA.

The Commission accordingly declared the operation compatible with the common market and the EEA Agreement.

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