U.S. agribusiness company Cargill has secured EU regulatory approval to purchase animal feed producer Provimi for €1.5 billion ($US2.17 billion).

The European Commission said that an investigation had established that the deal would not create competition issues. "The investigation showed that the horizontal overlaps between the activities of Cargill and KoroFrance (Provimi's holding company) in animal compound feed and feed mixes would not raise competition concerns given the relatively limited combined market position of the merging parties and the presence of a sufficient number of alternative suppliers," said the Commission.


Cargill made a binding offer for the purchase in August.