STORY
Vandemoortele will be required to sell its pastry manufacturing plant in Worcester and its UK sales operations in Staines-upon-Thames after the Competition and Markets Authority concluded that its acquisition of Délifrance would substantially reduce competition in the UK. Both companies supply frozen viennoiserie products, including croissants and pains au chocolat, to supermarkets and foodservice businesses.
The CMA found that the acquisition would make Vandemoortele the largest UK supplier of frozen viennoiserie products, potentially resulting in higher prices or lower quality for businesses and consumers. Vandemoortele conceded during the investigation that the merger raised competition concerns, allowing the regulator to consider remedies at an earlier stage and complete its investigation almost seven weeks ahead of the statutory deadline.
The Worcester plant and Staines sales operation must now be transferred to a suitable purchaser. The sale package will include the assets, staff, customer relationships, contracts and other rights required for the business to continue operating independently. Vandemoortele will remain active in the UK, while the CMA will monitor implementation of the sale.