Cargill edible seed oil cleared

The European Commission has cleared the proposed acquisition by US agribusiness Cargill of Belgian edible seed oil packer Associated Oil Packers bvba (AOP) - just three months after clearing Cargill's acquisition of French-based food company Cereol.

AOP, currently a 50/50 joint venture between Cargill and Belgian company Vandemoortele, was created in 1998 through the pooling of the European edible seed oil packaging and marketing activities of Cargill and Vandermoortele (VDM).

Under the present agreement notified to the Commission for regulatory clearance, Cargill will acquire VDM's shares in AOP, therefore gaining full control of the company.

The Commission examined the extent to which the full integration of Cargill's upstream position on the refined seed oil market and AOP's share of packed seed oils in the Benelux, Denmark and France could trigger any competition concerns. It concluded that the change from joint to sole control did not significantly alter the current competitive structure in the market, especially since AOP sources virtually all of its refined seed oil requirements from Cargill​.