European Commission approves acquisition of Belgium’s AOR by ADM

The European Commission has approved Archer Daniels Midland’s (ADM) acquisition of Belgium-based oil distributor AOR.

The Commission stated that the proposed acquisition would raise no competition concerns, since it does not make a huge impact on market shares, and the presence of a number of strong market players, as well as the overall level of overcapacity in the market.

The proposed deal was examined under the normal merger review procedure.

In March this year, ADM announced it reached an agreement to purchase AOR.

Currently, AOR manages bottling and distribution of edible oils in Europe, with brands including Oilio and Coroli.

The proposed acquisition is in line with ADM’s plan to expand its reach in Europe, particularly in Belgium, the Netherlands and Luxembourg.

It will also support ADM’s export markets through AOR’s facility at the Port of Antwerp.

ADM Oilseeds Processing business president Matt Jansen said: "This acquisition will allow us to expand our product offerings and customer base in Europe, offering entry into the continental European retail and foodservice markets, and an enhanced ability to export value-added products internationally.

"AOR is a leading company in the European packaged oils industry. It is a bolt-on acquisition that can be fully integrated into our operations, and offers excellent opportunities for profitable growth.

Financial details of the transaction were not disclosed.