BRUSSELS, Belgium - European Union regulators said Wednesday they would investigate Minnesota food company Cargill Inc.'s plans to buy Degussa AG's food-ingredients business.
The European Commission said it saw possible competition problems because the two companies are among four leading suppliers of lecithin, a natural emulsifier used to make a wide range of foods.
"This takeover involves two companies that are at the forefront of the production of natural emulsifiers used in particular in food products such as chocolate, bread and margarine," said EU Competition Commissioner Neelie Kroes.
"The commission must ensure that this operation will not detrimentally affect customers like food manufacturers and, consequently, European consumers."
