The Competition and Markets Authority (CMA) has cleared T&L Sugars’ (TLS’) deal to buy Tereos UK & Ireland’s retail sugar business.

The confirmation by the competition watchdog follows a phase two investigation led by an independent inquiry group.

A merger inquiry into the deal was first launched in January this year over concerns that the deal could reduce competition in the UK. Only three businesses – including TLS and Tereos’ UK retail business – supply the majority of sugar to customers such as supermarkets and restaurants.

However, having conducted a thorough investigation, the inquiry group has found that without the deal going ahead, the most likely outcome would be that Tereos’ UK retail business would close.

Since closure would also result in a loss of competition, and the evidence showed that there was no other alternative and less anti-competitive purchaser for the business besides TLS, the deal has now been cleared to go ahead.

“Having reviewed a wide range of evidence – including detailed financial information on Tereos’ UK retail business and the efforts they have taken to try and improve its performance – we believe that the right outcome is to clear this deal,” commented the chair of the independent inquiry group carrying out the phase two investigation, Richard Feasey.

---