Britain’s antitrust regulator warned on Friday that the acquisition of Tereos UK & Ireland’s assets by T&L Sugars might lead to an increase in sugar prices for UK consumers, reported Reuters.
T&L Sugars, operating as Tate & Lyle and specializing in refining and distributing packaged sugar in UK supermarkets, completed the purchase of Tereos’ consumer-facing operations in the UK and a distribution facility in West Yorkshire in November 2023.
If approved, the transaction would result in the merger of two of the three major sugar suppliers in the UK, leaving British Sugar, owned by Associated British Foods as the sole remaining competitor, according to the Competition and Markets Authority (CMA). The CMA stated that if the parties involved fail to propose remedies within five working days, the deal could be subject to a more in-depth investigation.
“The UK grocery market for sugar is already concentrated,” stated Sorcha O’Carroll, CMA’s senior director of mergers. “This merger would reduce competition further, limiting options for both consumers and businesses.”
T&L Sugars, previously divested by food ingredients maker Tate & Lyle in 2010 to U.S.-based cane sugar refiner ASR Group, which retained the brand name, is now under scrutiny for potentially impacting competition in the packaged sugar market in the UK.
Associated British Foods (ABF) anticipates a significant increase in sugar production in 2024 compared to the previous year. In January, ABF reported a 3.8% rise in quarterly revenues at its British sugar unit.
“We’re evaluating the CMA’s feedback and will determine next steps in the coming days,” a T&L Sugars spokesperson said in an email.
Britain’s Competition and Markets Authority (CMA) raised concerns on Friday that T&L Sugars’ acquisition of Tereos UK & Ireland’s assets could lead to higher prices for British consumers
