(Sharecast News) - Britain's competition regulator on Friday said that the Tate & Lyle Sugars purchase of UK & Ireland assets from France's Tereos could result in higher sugar prices for UK shoppers.
The Competition and Markets Authority (CMA) has given both sides five working days to offer a remedy or face a more in-depth investigation after ruling that the deal would see two of the three sugar suppliers in the UK merge.
That would leave Associated British Food's British Sugar as T&L's only competitor, it added.
T&L bought a distribution facility in West Yorkshire along with Tereos' UK consumer operations in November 2023 for an undisclosed sum. The facility packs and distributes white granulated, baking and specialty sugars to food retailers and wholesalers in the UK, under the Whitworths sugar brand and private labels.
"The supply of sugar to grocery retailers in the UK is already highly concentrated. This deal would bring together two of the three players in the UK sugar sector, reducing competition and choice further for people and businesses," said CMA senior director of mergers Sorcha O'Carroll.
Reporting by Frank Prenesti for Sharecast.com
Tate & Lyle (TATE)