UPDATE 1-Suedzucker says cartel office searched offices

Mon Mar 30, 2009 12:48pm EDT

* Antitrust regulator says also raided other companies

* Suedzucker says raid linked to EU sugar market reform

(Adds details)

FRANKFURT, March 30 (Reuters) - Europe's largest sugar company Suedzucker (SZUG.DE) said on Monday that the German cartel office had searched its offices as part of a competition investigation.

The cartel office said separately that three sugar companies and three sugar industry associations had been searched because of suspicion of collusion in price setting.

Suspicions had formed following the recent takeover of the sugar operations of Danish group Danisco DCO.CO by Germany's Nordzucker, the office said.

Suedzucker (SZUG.DE) confirmed its offices had been searched by cartel officials.

The Mannheim-based company said the investigation was related to the implementation of European Union sugar market reform.

Suedzucker said it would cooperate with the investigation.

"Suedzucker does not believe that this initial suspicion of the federal cartel office will have negative effects on the company," Suedzucker said.

No one was available for immediate comment at Germany's other to major sugar producers, Nordzucker and Pfeifer & Langen.

(Reporting Matthias Inverardi und Alexander Huebner, Writing by Michael Hogan; Editing by )

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