Regulator to review German takeover of Danisco Sugar
Germany's competition regulator said Friday it was extending a review of the planned takeover by a German company of a Danish sugar maker, dpa reported.
Nordzucker of Braunschweig, Germany, said months ago that it had agreed to purchase the sugar division of Danisco A/S of Denmark, a move that would boost its European sugar market share from 9 to 16 per cent.
Most European sugar production is derived from sugar beets.
The Federal Cartel Office in Bonn said the move to a second-phase review was because of fears that the move might affect free competition.
Nordzucker aims to fund the 750-million-euro (945-million-dollar) takeover with loans, while Danisco would claim 600 million kronor (100 million dollars) from the European Union sugar market restructuring fund.
Danisco Sugar is to operate as a separate Nordzucker division, but no name for it has been announced.