Tate & Lyle Sugars acquisition of competitor approved by CMA

The acquisition of sugar supplier Tereos UK and Ireland, and its UK packing and distribution site in Normanton, West Yorkshire, by Tate & Lyle Sugars has been approved by the Competition and Markets Authority (CMA).

Tereos UK and Ireland, packs and distributes sugar to be sold at retail and wholesale under the “Whitworths Sugar” brand, as well as other private labels.

Tate & Lyle Sugars is Europe’s leading supplier of cane sugar products and relies on imports to its refineries in London for processing.

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The acquisition means further consolidation for the sugar sector, with only British Sugar remaining as the major competitor to Tate & Lyle in the UK.

Concerns were initially raised by the CMA that the merger had the potential to result in a substantial decrease of competition in the UK.

However, following an in-depth investigation, it concluded the merger would not be expected to substantially reduce competition in UK markets and could go ahead.

Richard Feasey, chair of the independent inquiry group carrying out the Phase 2 investigation, 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.”

A spokesperson from Tate & Lyle Sugars said: “We welcome the CMA decision to clear our purchase. We believe it is good news for both businesses and we look forward to welcoming our new colleagues.”