BRUSSELS--European Union authorities said they had opened an in-depth investigation into Cargill Inc.'s (CRG.XX) $440 million purchase of the chocolate business of Archer Daniels Midland Co. (ADM.LN) amid concerns the deal could lead to higher prices.

The European Commission, the EU's top antitrust authority, said its preliminary investigation into the transaction, announced in September, "showed potential competition concerns in the supply of industrial chocolate to customers in Germany and the U.K."

"The proposed transaction could eliminate an important competitor and reduce the choice of suitable suppliers in already concentrated markets, which could lead to price increases," the Commission said.

The regulator said it would make a final decision on whether to approve the deal by July 8.

Write to Tom Fairless at tom.fairless@wsj.com

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