News
Tereos fined £25k after CMA investigation
Earlier this month the CMA cleared the acquisition of Tereos UK & Ireland’s retail sugar business by T&L Sugars, following a lengthy inquiry into a deal that was first announced in November 2023.
However, the CMA has subsequently issued Tereos with a £25,000 fine because the firm failed to comply with the requirements of the investigation in full. The maximum penalty that can be imposed is £30,000.
In particular, the inquiry group found that Tereos’ interpretation of the scope of the notice was unjustifiably narrow and untenable when viewed in the context of the object of the merger inquiry.
The firm’s failure to comply with the notice had an “adverse impact” on the investigation, the CMA said.
Richard Feasey, chair of the independent inquiry group which led the investigation, commented: “It’s important that firms respect the UK merger review process – which includes providing all the information we need to promptly progress our investigation.
“Firms and their advisers must not apply their own narrow, artificial interpretation of our formal information gathering requirements– as Tereos has done so here. Had they responded properly then Tereos could have avoided this fine altogether.”
Background
A Phase 1 inquiry was launched into the anticipated acquisition of Tereos UK & Ireland’s retail sugar business by T&L Sugars on 12 January, due to fears that the deal could lead to a “substantial lessening of competition” in the sugar market and cause potential price rises.
The deal was referred for an in-depth investigation on 22 March, but after the CMA learned that Tereos’ UK retail business would likely be forced to close without the acquisition, it was cleared.
Speaking after the investigation’s conclusion, 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.”
In other news, Co-op has recalled several batches of pate because packs may have been contaminated with Salmonella and Listeria monocytogenes.
