The Competition and Markets Authority (CMA) has cleared the acquisition of sugar supplier Tereos UK and Ireland, and its UK packing site, by Tate & Lyle Sugars.
The clearance comes after an independent inquiry group launched by the CMA explored concerns that the deal could reduce competition in the UK's sugar sector.
Only three businesses - including Tate & Lyle Sugars and Tereos’ UK retail business - supply the large majority of sugar to customers such as supermarkets and restaurants.
However, having conducted an investigation, the inquiry group found that, without the deal going ahead, the most likely outcome would be that Tereos’ UK retail business would close.
Since closure would also result in a loss of competition absent the merger, and the evidence showed that there was no other alternative and less anti-competitive purchaser for the business besides Tate & Lyle Sugars, the group decided to clear the deal.
Richard Feasey, chair of the inquiry group said: "Having reviewed a wide range of evidence – including detailed financial information on Tereos’ UK retail business and the efforts they have taken to try and improve its performance – we believe that the right outcome is to clear this deal."
Tate & Lyle Sugars announced their deal to buy Tereos UK & Ireland’s retail sugar business from Tereos in November 2023.
The business supplies supermarkets, wholesalers and foodservice customers in the UK.
