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Investigation launched into Arla Food Ingredients deal for nutrition brand

19-Sep-2024 - Last updated on 19-Sep-2024 at 09:25 GMT

Plans for the transformation of Volac’s production site in Wales were outlined when the deal was announced. Credit: Arla Food Ingredients / Volac Whey Nutrition

The Competition and Markets Authority (CMA) has launched an investigation into the anticipated acquisition of Volac Whey Nutrition by Arla Food Ingredients.

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.

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