The Competition and Markets Authority (CMA) has today cleared T&L Sugars Limited's (TLS') deal to buy Tereos UK & Ireland's retail sugar business, following an in-depth Phase 2 investigation led by an independent inquiry group.
The clearance comes after the inquiry group explored concerns that the deal could reduce competition in the UK. Only three businesses (including TLS and Tereos' UK retail business) supply the large majority of sugar to customers such as supermarkets and restaurants.
However, having conducted a thorough 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 TLS, the group has decided to clear the deal.
Richard Feasey, Chair of the independent inquiry group carrying out the Phase 2 investigation, 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.
