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Royal Cosun pleased with NMa ‘green light’

20 April 2007
Notification from the Netherlands Competition Authority (NMa) that Royal Cosun may acquire the activities of CSM Suiker has been received with great pleasure by Royal Cosun and its Suiker Unie subsidiary. It has brought a long period of uncertainty lasting three-quarters of a year to an end for the staff of both CSM Suiker and Suiker Unie, and for the sugar beet growers who supply CSM Suiker.
 
More than 75% of the CSM growers have already indicated that they wish to join the cooperative even though there had been no assurance that the NMa would approve the acquisition. Now that it has, CSM’s other growers will be able to take a decision in the near future. We expect most of them will also make the switch to Cosun.
 
The NMa carried out a thorough investigation of the effects of the proposed combination of the two sugar producers. The sugar market is changing rapidly and is quickly becoming more international. The combination of the two businesses will make us stronger in the European market and enable us to serve our sugar customers on a larger scale. Following the acquisition, Suiker Unie will command about 5% of the European sugar market.
 
Both organisations will be working hard on the integration in the coming months. The head offices of the combined sugar businesses will be transferred to the office in Dinteloord in due course.