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Investigation clears Arla Food Ingredients to acquire Volac's Whey Nutrition business
The deal was first agreed to on 18 April 2024, after which the CMA launched an investigation in order to determine whether the transaction could harm competition within the supply of whey protein for sports nutrition and food applications.
However, the probe has now concluded that the market in question is “not of sufficient importance” to warrant the launch a Phase 2 inquiry.
Arla Food Ingredients, which is a wholly owned subsidiary of Danish F&B giant Arla, will now complete the necessary formal processes before closing the acquisition in the “coming days”.
Under the terms of the agreement, Arla Food Ingredients will purchase shares in Volac Whey Nutrition Holdings and its subsidiaries, Volac Whey Nutrition and Volac Renewable Energy, while it has outlined plans to transform Volac’s manufacturing site in Felinfach, Wales, into a global centre for performance, health and food offerings.
The Volac group specialises in turning whey into ingredients for sports nutrition, with by-products sold for food and animal nutrition.
Step closer to a ‘significant’ deal
Luis Cubel, group vice president and managing director of Arla Foods Ingredients, welcomed the CMA’s decision.
“At a time when demand for high-quality whey ingredients is growing, we’re a step closer to a significant acquisition that would consolidate our position as a leader in the whey nutrition space,” Cubel said.
“We will now move forward with the formal process necessary to make Volac’s Whey Nutrition business part of Arla Foods Ingredients. Once that is complete, we will be able to comment further on the many advantages of bringing together these two major manufacturers of whey ingredients – not just for both companies, but also for our customers and the industry as a whole.”
Meanwhile, James Neville, a joint owner of Volac, added: “We were always confident that Arla Foods Ingredients had the necessary expertise and values to take our Whey Nutrition business to the next level, and we are delighted to have reached this important step in the acquisition process.
“It’s great news for Volac Whey Nutrition, and for the whey ingredients sector, that these two innovative companies have been allowed to join forces.”
In other news, KP Snacks has agreed to acquire Whole Earth Foods from Ecotone.
