Food and Beverage Business

T&L Sugars’ plan to move to Tereos site may face investigation in the UK

T&L Sugars' plan to move to Tereos site may face investigation in the UK confectionery, Shelf-stable Food and Beverage Business

The deal between T&L Sugars and Tereos for the acquisition of a UK packing and distribution site in Normanton, West Yorkshire is being investigated by the Competition and Markets Authority (CMA) for possible anti-competitive practices. The plan is to conduct a phase 2 investigation to determine whether the deal should be referred for further scrutiny. The CMA has until 8 March to make a decision regarding the need for a phase 2 investigation.

The transaction, announced in November, saw Tereos selling its site and business-to-consumer activities to T&L Sugars. The facility is involved in packing and distributing sugars to food retailers and wholesalers in the UK under the Whitworths sugar brand and private labels.

T&L Sugars is owned by ASR Group International, specializing in importing raw cane sugar and refining it into sugar for consumption at its refinery in London. The company supplies this sugar to industrial customers or packs and distributes it to customers in the B2C channel under British private labels, as well as under the Tate & Lyle brand.

The French company, in a statement, expressed satisfaction with the acquisition, emphasizing that it would secure the future of all employees and enable the UK B2C market to maintain the same level of quality and services with a warranty of supply.

Tereos plans to retain its industrial B2B activities, which will continue as TUKI.

In connection to this, the CMA is set to review the acquisition and its implications for competition in the UK market. It’s important for businesses to understand the legal and regulatory aspects of any potential acquisition and to be prepared for investigations that may arise.

The CMA is a key regulatory body in the UK and plays a crucial role in ensuring fair competition in the food and beverage industry. As a result, it’s important for companies operating in this sector to proactively consider the potential implications of their business decisions on competition within the industry. Failure to do so could lead to regulatory scrutiny and potential challenges in completing transactions.

Given the increasing scrutiny over mergers and acquisitions within the food and drink sector, companies need to be mindful of the competition regulations to avoid any potential obstacles and ensure that their strategic business activities comply with the authorities.

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