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Danisco Says Nordzucker Wants to Adjust Sugar Arm Price

Source: Reuters
18/02/2009

Dusseldorf/Copenhagen, Feb 18 - German sugar refiner Nordzucker wants to amend how much it pays for Danisco's sugar unit, the Danish ingredients firm said on Tuesday after Germany said the deal could pass only if it sold a plant.

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In July 2008, Nordzucker, Germany's second-largest sugar refiner, agreed to buy Danisco's sugar business for about 750 million euros ($948 million) pending regulatory approval.

Germany's Federal Cartel Office on Tuesday approved the sale on condition that Danisco's Anklam plant in eastern Germany be sold.

"Nordzucker has announced that it wishes to renegotiate the acquisition price as a consequence of the divestment of the Anklam site," Danisco said in a statement.

"We do not find this supported by the contract," it said.

Danisco declined further comment, saying it would say more "as soon as the situation has been further clarified".

Dutch ingredients group Cosun said on Monday it wanted to buy the plant, removing what sources familiar with the situation told Reuters was a major regulatory obstacle to the Danisco-Nordzucker deal.

Danisco stopped short of saying that Cosun would buy the plant but acknowledged that the German competition authorities had said the Dutch group may be a potential buyer.

The regulator said competition in Germany was locked between Nordzucker and market leader Suedzucker and a takeover of Danisco's operations would just entrench that, while selling Anklam to a "significant European producer" would be a remedy. ($1=.7908 Euro)



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