Merger Update: Vandemoortele / Délifrance

CMA proposes to accept remedies in pastry deal

Remedies proposed to resolve concerns that Vandemoortele's deal to buy Délifrance could have led to higher costs for supermarkets and commercial foodservice customers.

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:

1.   More detail on the remedies offered by Vandemoortele will be published on the case page in due course.

2.   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.