Uk Watchdog To Probe Délifrance Takeover

Credit: Tria Maret Aryuni/Shutterstock.com.

The UK’s anti-trust regulator has recovered Belgium bakery group Vandemoortele’s planned takeover of Délifrance whitethorn deed title successful nan country.

After nan completion of a alleged “Phase 1″ investigation, nan Competition and Markets Authority (CMA) said nan merger “gives emergence to a realistic imaginable of a important lessening of competition”.

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Vandemoortele announced a move for chap baker Délifrance successful March and said nan woody would create a €2.4bn (then $2.6bn) group, providing “solutions to unit and foodservice partners”.

In a connection yesterday (8 December), nan CMA cited nan effect nan transaction could person connected nan proviso of stiff laminated mixed products successful nan country.

The watchdog said it assessed “a wide scope of evidence” including soul documents and information gathered from 3rd parties. It concluded Vandemoortele and Délifrance are “close” competitors. The mixed business, nan CMA added, would beryllium nan “largest” supplier of stiff Laminated Dough products successful nan UK by a “considerable margin”.

“While location is simply a broader scope of competitors chiefly progressive successful continental Europe, nan CMA has not seen grounds that this broader competitor group is applicable successful nan UK and would enactment arsenic a capable competitory constraint connected nan merged entity post-merger.”

The CMA will mention nan projected woody for an in-depth, “Phase 2” investigation unless nan companies connection an acceptable undertaking to reside nan title concerns. They person until 15 December to taxable remedies. Just Food has approached Vandemoortele for comment.

The regulator besides examined different overlapping merchandise areas, including stiff bread, stiff patisserie and stiff savoury snacks.

In those segments, nan parties person a “limited overlap” successful nan UK pinch “sufficient competition”, it said.

Earlier this month, nan European Commission began reviewing definite concessions submitted by Vandemoortele successful narration to nan takeover.

Documents connected nan Commission’s website show its title limb was notified astir nan woody successful October, though nan acquisition was first announced by family-owned Vandemoortele successful March for an undisclosed sum.

Vandemoortele already runs 32 manufacturing plants and employs 4,094 workers, pinch its bakery products business generating an estimated turnover of €1.4bn.

Délifrance, a subsidiary of French atom cooperative Vivescia, generated turnover of astir €930m successful nan twelvemonth done June.

The institution operates 14 accumulation facilities, employs astir 3,450 unit and supplies unit and out-of-home customers crossed Europe and successful Asia.

In February, Vandemoortele snapped up Italian stiff bakery shaper Lizzi, adding Bunge’s European margarine and spreads business the pursuing month.