Bonn, Germany - Germany's competition regulator said Friday it was extending a review of the planned takeover by a German company of a Danish sugar maker.

Nordzucker of Braunschweig, Germany, said months ago that it had agreed to purchase the sugar division of Danisco A/S of Denmark, a move that would boost its European sugar market share from 9 to 16 per cent.

Most European sugar production is derived from sugar beets.

The Federal Cartel Office in Bonn said the move to a second-phase review was because of fears that the move might affect free competition.

Nordzucker aims to fund the 750-million-euro (945-million-dollar) takeover with loans, while Danisco would claim 600 million kronor (100 million dollars) from the European Union sugar market restructuring fund.

Danisco Sugar is to operate as a separate Nordzucker division, but no name for it has been announced. (dpa)