Vandemoortele required to sell UK plant following pastry merger investigation

The independent inquiry group leading the Competition and Markets Authority (CMA)’s in-depth phase 2 investigation into Vandemoortele’s acquisition of Délifrance has today published its final report.

Vandemoortele and Délifrance both supply frozen viennoiserie products, such as croissants and pains au chocolat, to supermarket and foodservice customers. These products are typically baked in-store or on-site before being sold or served to UK consumers.

Having assessed the evidence, the inquiry group concluded that the merger would lead to Vandemoortele becoming the largest supplier of frozen viennoiserie products in the UK and substantially reduce competition in the supply of these products, potentially leading to higher prices or lower quality for businesses and ultimately consumers.

After Vandemoortele conceded that the merger led to a substantial lessening of competition in the UK, the inquiry group was able to streamline its investigation and engage with the businesses much earlier than is typically the case on ways to effectively resolve the competition concerns.

The CMA – following implementation of its 4Ps framework (pace, predictability, proportionality and process) and the constructive engagement with Vandemoortele – has therefore been able to conclude the investigation almost 7 weeks ahead of the 24-week statutory deadline.