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