Arla Foods Ingredients planned takeover of Volac’s whey nutrition business has courted interest from the Competition & Markets Authority (CMA).
The CMA have launched an investigation into the proposed acquisition to determine how the deal could affect the dairy ingredients sector and lessen competition, outlined within the Enterprise Act 2002.
The deal to purchase the Volac facility in Wales was announced in April, with Arla’s ingredients business stating the development would globalise production and make the site a “cornerstone” of the health and food sector.
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Arla Foods Ingredients vice president and managing director Luis Cubel commented at the time of the deal that the Volac organisation was “a pioneer in the use of whey protein for performance nutrition and has a wealth of expertise as well as an incredibly talented team.
“It shares our commitment to helping companies worldwide harness the full potential of whey, and we’re hugely excited about the opportunities that lie ahead.”
Volac Whey Nutrition offers the Volactive range, while Arla Foods Ingredients produces the Lacprodan line of sports nutrition products, which includes ready-to-drink options, powder shakes, and protein bars.
The CMA has set a deadline of November 13 to decide whether the investigation will require a deeper, two-phase inquiry to arrive at a conclusion.
Arla Foods were contacted for comment.
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