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India – CCI Approves Cargill-Copersucar Sugar Trading Joint Venture.

17 April, 2014

 


On June 3, 2014, CCI approved the proposed formation of a 50:50 joint venture company in the Basque Country, Spain (‘JV Company’) between Cargill International Luxembourg 2 S.A.R.L. (‘Cargill Luxembourg’) and Copersucar S.A. (‘Copersucar’). The proposed JV Company would be active in trading of raw, low quality white and refined sugar, and related activities, worldwide, except in certain jurisdictions.

 
CCI noted that Copersucar, a company registered under the laws of Brazil, is engaged in the trading of sugar and ethanol world wide, though it does not have any assets or turnover in India. Further, Cargill Luxembourg is a wholly owned subsidiary of Cargill Inc., which is engaged in the business of providing food, agriculture, financial and industrial products and services, globally. Cargill Inc. is present in India through Cargill India Private Limited (‘Cargill India’), which apart from being engaged in the businesses of processing, refining and marketing edible oils, offering food ingredients to food manufacturers and the food service industry, etc., is also engaged in the sugar trading business in India.

 
CCI observed that while both the Cargil group and the Copersucar group were engaged in the sugar trading business at a global level, Copersucar had no business operations in India. Further, the business operations of Cargill India in this market in India were restricted to sugar trading and it was not engaged in the business of sugar production. CCI further observed that, considering the absence of any Cargill group entity which was engaged at different levels of sugar production and/or sugar trading in India, there were no horizontal or vertical relationships between the activities of the parties in India.

 
Accordingly, CCI approved the proposed combination on the basis that it was not likely to have any Adverse Effect in India

 

AZB

 

For further information, please contact:

 

Zia Mody, AZB & Partners
[email protected]

 

Abhijit Joshi, AZB & Partners 
[email protected]

Shuva Mandal, AZB & Partners 
[email protected]

 

Samir Gandhi, AZB & Partners
[email protected]

Percy Billimoria, AZB & Partners 
[email protected]

 

Aditya Bhat, AZB & Partners 
[email protected]

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