EU approves takeover of British-based food firm

European Union regulators have today approved the takeover of British-based emulsifiers producer Abitec by Danish sugar and food ingredients company Danisco A/S.

The European Commission says the deal to purchase Northampton-based Abitec, a subsidiary of Associated British Foods PLC, will not hinder competition on the European market.

Copenhagen-based Danisco is a global producer of food ingredients, including emulsifiers. Abitec is as well, but is a much smaller producer.

The EU Commission said in its decision today it had initial concerns that the purchase of Abitec would remove a low-cost commodity supplier from the market, however it said competitors were sure to boost production if there was demand.