Arla Food Ingredients agreed to acquire the firm's whey nutrition division through the full purchase of shares in Volac Whey Nutrition Holdings and its subsidiaries, Volac Whey Nutrition Limited and Volac Renewable Energy Limited.
Following the announcement of the deal in April 2024, Arla Food Ingredients outlined its plans to transform Volac’s manufacturing site in Felinfach, Wales, into a global centre for performance, health and food offerings.
However, on 18 September the CMA confirmed that it had triggered an investigation into the deal due to concerns that it may lead to a reduction in competition within the whey nutrition market.
Between 18 September and 2 October interested parties will be able to submit written comments on the transaction, which will be used to inform the inquiry.
A deadline of 13 November has been by the CMA set for a phase 1 decision to be announced. Should the phase 1 inquiry raise serious concerns about the lessening of competition, the investigation will move into phase 2.
‘Complementary offerings’
Speaking at the of the acquisition’s announcement, Arla Food Ingredients group vice president Luis Cubel said that the deal brings together two businesses with “complementary offerings” within the international whey products market.
Cubel continued: “Volac is a pioneer in the use of whey protein for performance nutrition and has a wealth of expertise as well as an incredibly talented team. It shares our commitment.”
Meanwhile, Volac joint owner James Neville said that in Arla Food Ingredients, he felt that they had chosen a partner with the right values and expertise, as well as the ambition to take the business to the next level.
“Whey processing started at the Felinfach site more than three decades ago, and we couldn’t be prouder of everything that’s been achieved by everyone involved in the business since then,” he added.
In other news, Asda has announced that co-owner Mohsin Issa is stepping away from his executive leadership role with the retailer.
