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CMA clears T&L Sugars purchase of Tereos UK & Ireland retail business
The decision comes following the completion of an in-depth Phase 2 investigation by an independent inquiry group.
A Phase 1 inquiry was first launched by the CMA on 12 January 2024, more than two months after the deal was announced.
After inviting interested parties to comment on the deal, the CMA concluded that the purchase of Tereos UK & Ireland’s consumer packed sugar operation could lead to a “substantial lessening of competition” in the sugar market and potential price rises.
Three businesses (including the two involved in the deal) supply the large majority of sugar to customers such as supermarkets and restaurants.
As a result, the CMA referred the anticipated acquisition for an in-depth investigation on 22 March 2024.
In has now been revealed that the investigation found that Tereos’ UK retail business would likely be forced to close without a deal in place. As such a closure would also result in a loss of competition and no alternative buyer was available, the acquisition was cleared.
‘Right outcome is clear’
Commenting on the decision making process, chair of the independent inquiry group carrying out the Phase 2 investigation, Richard Feasey, 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.”
With three sites in the UK, T&L Sugars refines and distributes sugar and related products, including under the Tate & Lyle brand. It is part of the ASR Group, which acquired the business from Tate & Lyle in 2010 for £211m.
Meanwhile, Tereos UK & Ireland operates a packaging facility in Normanton, West Yorkshire, sourcing sugar from parent company Tereos.
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