UK watchdog orders Aramark to divest Entier after merger probe

CMA says Aramark-Entier deal harms competition

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Aramark ⁠plans ‌to appeal CMA's decision

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CMA ⁠has 12 weeks to finalise decision on Entier sale

Jan 15 (Reuters) - Britain's competition watchdog on Thursday ordered ‍U.S.-based food services provider Aramark to sell offshore catering firm Entier, ⁠ruling the acquisition had harmed competition for services to North Sea oil and gas platforms.

Following an in-depth investigation, the Competition and Markets Authority said ​the deal combined two of only three major suppliers of offshore catering and facilities management services in the UK Continental Shelf.

It said the tie-up completed in January 2025 would ‍leave customers with limited choice and potentially inflate prices and reduce service ‌quality.

Aramark, which acquired a 90% stake in Entier, opted not to offer a remedy and ‌withdrew an initial proposal, the CMA said, prompting the regulator to decide that only a full sale of Entier to an approved ‌buyer would restore competition.

"We are disappointed in the CMA decision and ​intend to appeal," Aramark said in a statement to Reuters.

The food services and facilities provider added that it viewed the merger with Entier ⁠as a "good investment" to grow its footprint in ‍the United Kingdom and benefit clients across the North Sea.

The CMA now has 12 ​weeks to either accept final undertakings from Aramark ⁠or issue a final order requiring the company to sell Aberdeen-based Entier. (Reporting by Yamini Kalia and Rishab Shaju in Bengaluru. Editing by Krishna Chandra Eluri and Mark Potter)

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