Vandemoortele concedes Délifrance deal could hit UK competition, watchdog says

Vandemoortele has conceded that its acquisition of bakery adjacent Délifrance could lessen contention successful the proviso of frozen laminated-dough products successful the UK.

In a connection contiguous (15 May), the UK's Competition and Markets Authority said Vandemoortele had notified the watchdog that it accepts the woody “may beryllium expected to effect successful a important lessening of competition” for retail and foodservice customers, reflecting concerns raised during the CMA’s Phase 1 investigation.

The regulator said the interest relates to “horizontal unilateral effects” successful the proviso of frozen laminated-dough products.

The CMA said it has accepted Vandemoortele’s alleged SLC concession and volition proceed its probe connected that basis.

Last month, CMA referred the transaction for an in-depth Phase 2 probe aft concluding the Belgium concern had failed to resoluteness its contention concerns.

First announced successful March past year, the woody had raised contention concerns successful the UK and the EU, with Vandemoortele pledging successful December to merchantability 2 Délifrance plants successful France to unafraid clearance.

To get the acquisition approved by contention authorities, the family-owned radical committed to dispose of the brace of frozen laminated-dough facilities successful Avignon successful the southbound of France and Béthune successful the north.

While the European Commission provisionally approved the woody successful December connected those conditions, a purchaser has not yet materialised.

Explaining the conclusions from its archetypal probe successful April, the CMA said it “found that the merger could pb to Vandemoortele becoming the largest supplier of frozen viennoiserie products successful the UK by a sizeable borderline and could substantially impact contention successful the proviso of these products, perchance starring to higher prices oregon little prime for customers successful the UK”.

When the woody was announced, Vandemoortele said the operation with Délifrance would make a €2.4bn ($2.6bn) bakery group, providing “solutions to retail and foodservice partners”.

Délifrance operates 14 accumulation facilities, employs much than 3,200 unit and supplies retail and out-of-home customers crossed Europe and successful Asia.

Vandemoortele has 28 manufacturing plants and 3,500 workers.

The company’s frozen bakery brands see Lizzi, Banquet d’Or and Lanterna, portion the concern besides produces for private-label clients. It supplies markets successful Europe and the US.

"Vandemoortele concedes Délifrance woody could deed UK competition, watchdog says" was primitively created and published by Just Food, a GlobalData owned brand.

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