E.U. clears Cargill acquisition of Cerestar

by Chrystal Shannon
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In clearing the acquisition by Cargill, Inc. of Montedison’s 56% shareholding in Cerestar, the European Commission said effective competition would continue in the E.U. starch and vital wheat gluten markets. It referred the issue of glucose syrups and blends markets in the U.K. to competition authorities there.

Cargill now awaits a ruling on the transaction by the U.S. Department of Justice. If favorable, Cargill will purchase Montedison’s shares and file a public tender offer for the remaining 44% interest in Cerestar at 33 euros (U.S.$29.82) per share.

Cargill said it hopes the deal will be completed by spring 2002.