A proposed tie-up between Tate & Lyle Sugar and Whitworths’s owners has drawn scrutiny from the Competition and Markets Authority over fears prices could surge.
According to the watchdog, competition could be harmed by the plan, which was announced in November and would see T&L Sugars buy Tereos UK and Ireland’s packed sugar unit.
Such a deal could “lead to a substantial lessening of competition,” the CMA warned on Friday, with the duo given five working days to offer remedies and avoid a second phase of investigation.
“The supply of sugar to grocery retailers in the UK is already highly concentrated,” CMA senior director Sorcha O’Carroll noted, with Primark sister brand British Sugar the third and final player in the market.
“This deal would bring together two of the three players in the UK sugar sector, reducing competition and choice further for people and businesses," she said.
“It’s now up to TLS and Tereos to find a way to address our competition concern.”