The UK Competition and Markets Authority is moving forward with an investigation into T&L Sugars’ proposed acquisition of Tereos’ UK assets, citing concerns about competition and consumer impact. The regulator’s decision to escalate the probe to a second phase comes after T&L Sugars failed to address initial issues raised in the preliminary findings.
Both companies were given until 15 March to respond to the watchdog’s concerns, but T&L Sugars declined to offer any undertakings, prompting the move to a more thorough investigation. The CMA aims to complete the in-depth review by 5 September and has reached out to T&L Sugars and Tereos for their comments on the latest development.
Following the initial phase, the CMA highlighted the potential risks of increased sugar prices for UK consumers and noted a significant decrease in competition. With T&L Sugars and Tereos facing limited competition from British Sugar, the acquisition could further concentrate the market, leading to higher prices for retailers and ultimately consumers.
O’Carroll, senior director of mergers at the CMA, expressed concerns about the deal’s impact on competition and consumer choice, as it would bring together two major players in the UK sugar sector. Tereos’ UK and Ireland unit operates in Normanton, West Yorkshire, packing and distributing sugar products, while T&L Sugars, a subsidiary of ASR Group International, manufactures a range of sugar and sweetener products under the Tate and Lyle brand.
The potential acquisition has raised red flags about market concentration and its implications for pricing and competition in the food and beverage industry. As the investigation progresses, stakeholders will be closely watching for updates on how the deal could affect the food and drink business landscape and consumer trends.
