UK regulator accepts concession that the deal may reduce competition in frozen laminated-dough supply for retail and foodservice sectors.
Vandemoortele has acknowledged its €2.4bn acquisition of Délifrance could harm competition in the UK frozen laminated-dough market. The Competition and Markets Authority (CMA) confirmed the concession, citing potential “horizontal unilateral effects” for retail and foodservice customers during its Phase 1 probe.
The CMA referred the deal for a Phase 2 investigation last month after initial concerns remained unresolved. Vandemoortele previously pledged to divest two Délifrance plants in France to secure EU approval, though no buyer has emerged. The UK watchdog will proceed with its in-depth review based on the concession.
The transaction, announced in March 2023, has faced scrutiny in both the UK and EU over competition risks. The CMA’s acceptance of the concession signals heightened regulatory hurdles for the deal’s completion.