Britain’s competition watchdog said on Tuesday it has provisionally approved the deal for T&L Sugars to buy Tereos UK & Ireland’s retail sugar business.
T&L Sugars, which refines and distributes packaged sugar across supermarkets in the UK, bought Tereos’ consumer facing operations in the UK and a distribution facility in West Yorkshire in November 2023.
The Competition and Markets Authority (CMA) referred the deal to an in-depth probe in March after the regulator found that the transaction could result in higher sugar prices for UK shoppers.
“We have provisionally found that the most likely outcome is that Tereos’ UK retail business would have closed, absent the deal with TLS and on this basis we have provisionally decided to approve the merger,” the CMA said on Tuesday.
The regulator added that a closure of Tereos’ UK retail business would also result in a loss of competition without the merger.
T&L Sugars was sold by London-listed food ingredients maker Tate & Lyle in 2010 to U.S.-based cane sugar refiner ASR Group.
Source: Reuters.com