Vandemoortele Concedes Délifrance Deal Could Hit Uk Competition, Watchdog Says

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Vandemoortele has conceded that its acquisition of bakery adjacent Délifrance could lessen title successful nan proviso of stiff laminated-dough products successful nan UK.

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

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

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

Last month, CMA referred nan transaction for an in-depth Phase 2 probe aft concluding nan Belgium business had grounded to resoluteness its title concerns.

First announced successful March past year, nan woody had raised title concerns successful nan UK and nan EU, pinch Vandemoortele pledging successful December to waste 2 Délifrance plants successful France to unafraid clearance.

To get nan acquisition approved by title authorities, nan family-owned group committed to dispose of nan brace of stiff laminated-dough accommodation successful Avignon successful nan southbound of France and Béthune successful nan north.

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

Explaining nan conclusions from its first probe successful April, nan CMA said it “found that nan merger could lead to Vandemoortele becoming nan largest supplier of stiff viennoiserie products successful nan UK by a sizeable separator and could substantially impact title successful nan proviso of these products, perchance starring to higher prices aliases little value for customers successful nan UK”.

When nan woody was announced, Vandemoortele said nan operation pinch Délifrance would create a €2.4bn ($2.6bn) bakery group, providing “solutions to unit and foodservice partners”.

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

Vandemoortele has 28 manufacturing plants and 3,500 workers.

The company’s stiff bakery brands see Lizzi, Banquet d’Or and Lanterna, while nan business besides produces for private-label clients. It supplies markets successful Europe and nan US.