041051 EU Clears Acquisition of Brazil Producers by CargillOctober 31, 2004Brussels, Belgium - The European Commission has cleared, under the European Union's Merger Regulation, the proposed acquisition of the Brazilian pork and poultry producer Seara Alimentos, S.A. by Cargill Inc. of the United States. Although it has an impact in Europe, the acquisition poses no serious competition concerns. On 27 September, the Commission received notification under the Merger Regulation of Cargill's agreement to buy the majority of shares of Seara Alimentos, S.A. (Seara). Both companies are active in the supply of chicken parts in the European Economic Area (EEA) as well as worldwide. The principal area of competition between the parties relates to the supply of boneless chicken breast meat products in the EEA. However, the companies overlap only to an insignificant degree and will continue to face competition from other important suppliers. Cargill is also active in the supply of further processed chicken products (e.g., kievs, goujons, chicken nuggets) for which boneless chicken breast meat is used.
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