The Competition and Markets Authority (CMA) is proposing to accept remedies offered following its investigation into Vandemoortele’s deal to buy Délifrance.



Vandemoortele and Délifrance each supply frozen viennoiserie products such as croissants and pains au chocolat, to supermarket and foodservice customers. Supermarkets and other customers bake these products in their in-house bakeries and sell or serve them to end-consumers. The merger would lead to Vandemoortele becoming the largest supplier of frozen viennoiserie products in the UK by a considerable margin.



A Phase 1 investigation by the CMA found that the deal could result in a substantial lessening of competition in the supply of these products to customers in the UK, potentially leading to higher prices which could be passed onto UK shoppers.



To resolve the CMA’s concerns, the businesses have offered to sell Délifrance’s UK viennoiserie business together with 2 production facilities in France, in Avignon and Béthune, with the capacity to supply all of the frozen viennoiserie products that Délifrance currently sells into the UK, to a purchaser to be approved by the CMA. Having considered this proposal, the CMA believes it could resolve its competition concerns and will consult on the remedies package and the potential purchaser in due course.



Sorcha O’Carroll, Senior Director for Mergers at the CMA, said:


  

Our initial investigation found that this deal could have led to higher prices or reduced quality for supermarkets and foodservice customers across the UK, so we welcome steps taken by the businesses to address our concerns.

  

By offering to sell the relevant Délifrance UK business together with two production facilities to an approved purchaser, we believe this will protect choice and maintain quality, helping ease the pressure on businesses and the households they serve.




More information can be found on the Vandemoortele / Délifrance case page.

Notes to editors:


  More detail on the remedies offered by Vandemoortele will be published on the case page in due course.
  All media enquiries should be directed to the CMA press office by email at press@cma.gov.uk or by phone on 020 3738 6460.

CMA Accepts Remedies for Vandemoortele's Acquisition of Délifrance

The Competition and Markets Authority (CMA) in the UK is considering remedies offered by Vandemoortele in relation to its acquisition of Délifrance. The merger would make Vandemoortele the largest supplier of frozen viennoiserie products in the UK, raising concerns about potential competition reduction.

A Phase 1 investigation revealed that the merger could lead to higher prices for consumers, prompting the CMA to seek solutions. To alleviate these concerns, Vandemoortele has proposed selling Délifrance's UK viennoiserie business along with two production facilities in France to an approved buyer.

The CMA believes that this divestiture could effectively address the competition issues identified. Senior Director for Mergers at the CMA, Sorcha O’Carroll, emphasized the importance of maintaining competition to protect consumer choice and quality.

Further details regarding the remedies and potential purchaser will be made available on the case page as the consultation process progresses.



CMA Accepts Remedies for Vandemoortele's Acquisition of Délifrance

The UK Competition and Markets Authority proposes to accept remedies from Vandemoortele to address competition concerns regarding its acquisition of Délifrance.