Cargills Continental buy examined

27 January 1999

Cargill’s Continental buy examined

CARGILLS acquisition of Continentals grain trading operations is examined by the Financial Times as the deal is scrutinised by a congressional sub-committee.

The deal, which adds Continentals 83 grain-trading facilities to Cargills 243, lifts Cargills share of US corn exports to 42%, of US wheat exports to 19% and of US soyabean exports to 31%.

Illinois is seen as the biggest problem for the deal, because it is the area where there is the biggest overlap between the two companies in danger of monopolising the market.

The US Justice Department, the Commodity Futures Trading Commission and the European Union are all reviewing the takeover.

• Financial Times 27/01/99 page 34