On 29th of March, The Administrative Council for Economic Defense announced that it will evaluate a concentration act involving a purchase and sale agreement between the Cargill and Croda groups for the acquisition of Target. The public notice for the operation is available in today's edition of the Official Gazette (DOU).
According to the notification form, the Croda Group will undertake an internal reorganization of assets to transfer the entire business to Target. Then Target will be acquired by Cargill Velocity, which will become its sole parent.
In Brazil, the Cargill Group operates in the segments of agricultural products trading, production and marketing of sugar, ethanol, starch, glucose syrup, unsaturated fat, citric acid, degummed and refined oils, olive oil, in addition to other food and production of premix for animal nutrition. The Croda Group, in turn, produces ingredients such as lanolin, esters, acrylic polymers, encapsulated actives and refined oils in Brazil. The company also operates in the production of film coating liquids and seed treatments for large plantations, in addition to quality control, analytical services and research laboratories.
According to Cargill, the operation will allow the expansion of the bioindustrial portfolio, helping its customers with innovative solutions in Europe, the USA and Asia. The Croda Group, on the other hand, intends to reinvest the operation's resources, expanding its operations in the health care segment, with a focus on sustainability in the personal care and crop protection markets.
Pursuant to legislation, the competitive analysis of mergers must be completed within 240 days. This legal term may be extended by another 90 days, upon a reasoned decision by the Administrative Court of CADE, or by 60 days at the request of the parties' lawyers.
Concentration acts can be classified by CADE as summary, considered simpler from the competition point of view, or ordinary, which require a more in-depth analysis. The appraisal of transactions submitted to the summary procedure must be completed within 30 days, as provided for in Resolution 02/2012.
Source: CADE
