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CCI gives green signal to Cargill JV in North America


CCI gives green signal to Cargill JV in North America

By PTI | 29 Apr, 2013, 09.06PM IST
NEW DELHI: Fair trade regulator CCI has approved US-based food major Cargill's proposed joint venture with ConAgra Foods and CHS Inc in North America, saying that the deal will have no adverse impact on competition in India.

Cargill sells food items, including food ingredients and edible oil brands such as Sweekar and NatureFresh, while ConAgra Foods operates in the country through Agro Tech Foods.

As per the proposed deal, all the three US-based companies would consolidate their flour milling and other related business in North America, along with that of their respective subsidiaries into a new company called Ardent Mills.

In an order dated April 23, the Competition Commission of India (CCI) observed that "the proposed combination is limited to certain businesses and assets of the parties (Cargill, CHS and ConAgra) in North America and do not involve the operations or assets of the parties in India".

"...the proposed combination is not likely to have an appreciable adverse effect on competition in India and therefore, the Commission hereby approves the proposed combination under the...(Competition) Act," it added.

As per the deal, ConAgra, Cargill and CHS would establish H M Luxembourg S a r l (HMLS) as a joint venture, to combine their North American (Canada, USA and Puerto Rico) flour milling operations and other related business along with that of their respective subsidiaries.

Cargill, an international producer and marketer of food ITEMS, is stated to operate in India through its group companies in different businesses, including edible oil and food ingredients.

ConAgra, also a US-based food company operates in India through Agro Tech Foods in which it is stated to hold 51 per cent equity shares. Agro Tech Foods offers various food and food ingredient products.

US-based CHS is a cooperative owned by farmers, ranchers and their member co-operatives across the US and does not have any assets in India.

Following the agreement between the three companies, HMLS approached CCI for its approval earlier this month.

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