The Competition and Markets Authority (CMA) has approved the acquisition of Tereos UK and Ireland, a sugar supplier, along with its UK packing facility, by Tate & Lyle Sugars.

This decision follows an investigation by an independent CMA inquiry group, which examined concerns that the merger might reduce competition in the UK’s sugar industry.

Currently, three companies, including Tate & Lyle Sugars and Tereos’ UK retail division, dominate the supply of sugar to major customers such as supermarkets and restaurants.

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However, the investigation concluded that, without the merger, Tereos’ UK retail business would likely close. Since this closure would also reduce competition and there was no alternative buyer less likely to impact competition, the group decided to approve the deal.

Richard Feasey, chair of the inquiry group, stated: “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."

Tate & Lyle Sugars first announced its acquisition of Tereos UK & Ireland’s retail sugar business in November 2023. This business supplies supermarkets, wholesalers, and foodservice providers across the UK.