The Competition and Markets Authority (CMA) has decided that Aramark must unwind its purchase of UK catering company Entier, following an investigation.

The competitions regulator has stated that the deal would harm competition in the UK for offshore catering and facilities management services for infrastructure assets located in the UK Continental Shelf (UKCS).

Aramark, a US-headquartered food and facilities management provider, had acquired 90% of Aberdeen-based Entier this month. Both companies supply offshore catering and related services to oil and gas platforms and other infrastructure in the UKCS and the North Sea.

The CMA’s independent panel concluded that the deal combined two of three major suppliers in the UK.

Offshore infrastructure operators consider offshore catering critical to their operations and staff morale, but the CMA said that this merger would reduce the choice available to these customers.

The regulator also determined that the merger would lead to a “substantial lessening” of competition, potentially leading to higher prices or reduced quality for customers for offshore catering services for the UKCS.

Chair of the independent panel investigating the merger, Richard Feasey, said: “People working in the offshore oil and gas fields face incredibly difficult working conditions at sea, so keeping them fed and looked after is critical – that’s why effective competition for these catering services is so important.

“Our investigation found that this deal would leave customers of these services with very limited choice, making it harder for them to get the best value and quality. We assessed all the options available which could resolve our concerns and restore competition. We found the only effective way of achieving this was requiring Aramark to sell Entier.”

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