UK Watchdog Provisionally Clears Sugar Deal

Britain’s competition watchdog announced on Tuesday that it has provisionally approved the acquisition of Tereos UK & Ireland’s retail sugar business by T&L Sugars. The decision follows an in-depth investigation by the Competition and Markets Authority (CMA), which began in March.

T&L Sugars, a key player in the UK’s packaged sugar market, acquired Tereos’ consumer-facing operations and a distribution facility in West Yorkshire in November 2023. The CMA’s probe was initiated due to concerns that the merger could lead to higher sugar prices for consumers in the UK.

However, the CMA has now provisionally concluded that the deal is beneficial. “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 watchdog stated on Tuesday. The regulator also emphasized that the closure of Tereos’ UK retail operations would have resulted in a loss of competition, further justifying the need for the merger.

T&L Sugars, which refines and distributes sugar across UK supermarkets, was originally sold by Tate & Lyle in 2010 to the U.S.-based ASR Group, a major cane sugar refiner. The latest acquisition will strengthen T&L Sugars’ market presence and ensure continuity in the supply of sugar products to UK consumers.

The CMA’s provisional approval is subject to a final decision, which will take into account any feedback from stakeholders before concluding the process.

Source: Reuters