News 227 views last update:7 Aug 2012

Cargill's takeover of Agrograin approved

Hungary's competition authority GVH has approved US-based Cargill's initiative to gain full ownership over Agrograin, one of the leading local grain and oilseeds trading and storage companies, by acquiring a 64.43% stake in it.

Cargill, a US-based international provider of food, agricultural and risk management products and services, turned to GVH in early August this year with intention to buy a majority stake in Agrograin, thus becoming its sole owner.

"According to the Competition Act, the GVH cannot refuse approval if a merger does not create or strengthen significant market power that would obstruct the formation, existence or development of effective competition on the market in question," the watchdog said in a statement.

The GVH probe found that Agrograin and the Cargill group do not market any good, of which their share (individual or combined) would reach an extent in Hungary that would raise competition concerns therefore the GHV approved the merger.

With headquarters in Budapest, 23 locations around the country and about 290 employees, Agrograin has been a joint venture partner with Cargill since 1995.

Related links:
Cargill Animal Nutrition

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