Mondelez, DE Master Blenders propose Carte Noir sale

(Recasts with Mondelez and DE Master Blender statement, adds Lavazza comment)

BRUSSELS/MILAN, Feb 23 (Reuters) - Mondelez International and DE Master Blenders 1753 proposed on Monday selling the Carte Noir coffee brand instead of two smaller marques to soothe European competition concerns about their merger.

Combining Mondelez International's coffee business with its Netherlands-based rival would create the world's second-biggest coffee company after Nestle.

European Union antitrust regulators said earlier on Monday they had extended their review of the proposed tie-up until June 1 because they were unhappy with the solutions offered so far by the two companies.

The merger would significantly reduce competition for roast and ground coffee in France, Denmark and Latvia, as well as for filter pads in France and Austria, EU antitrust regulators have said.

"We are proposing a new remedy package," Mondelez and D.E. Master Blenders 1753 said in a joint statement in response to the competition enforcer's concerns.

The new option was the sale of the "Carte Noir brand for all coffee formats across the European economic area, including the divestment of the brand in-home Roast & Ground, filter pads and Nespresso compatible capsules businesses", the companies said, adding that it replaced a previous offer to sell the L'Or and Grande Mere brands.

Italy's Lavazza had offered more than 600 million euros ($680 million) for L'Or and Grande Mere together and was raising cash for the acquisition, hoping for a positive response from the EU antitrust body.

The Italian coffee maker will evaluate "any future opportunity as the transaction (between Mondelez International and D.E. Master Blender) develops", Lavazza said in a statement without elaborating.

Carte Noir, owned by Mondelez International, is one of France's best-selling premium coffee brands.

($1 = 0.8826 euros) (Reporting by Foo Yun Chee, Elisa Anzolin and Francesca Landini in Milan; Editing by Liisa Tuhkanen and David Clarke)

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