Britain's competition watchdog has provisionally approved the deal for T&L Sugars to buy Tereos UK & Ireland's retail sugar business.
T&L Sugars, which refines and distributes packaged sugar across supermarkets in the UK, bought Tereos' consumer facing operations in the UK and a distribution facility in West Yorkshire in November 2023.
In-Depth Probe
The Competition and Markets Authority (CMA) referred the deal to an in-depth probe in March after the regulator found that the transaction could result in higher sugar prices for UK shoppers.
'We have provisionally found that the most likely outcome is that Tereos' UK retail business would have closed, absent the deal with TLS and on this basis we have provisionally decided to approve the merger,' the CMA said on Tuesday.
The regulator added that a closure of Tereos' UK retail business would also result in a loss of competition without the merger.
T&L Sugars was sold by food ingredients maker Tate & Lyle in 2010 to U.S.-based cane sugar refiner ASR Group.
Tereos Full-Year Performance
In May, Tereos reported full-year revenues boosted by a €7.14 billion increase in prices across all segments (+9%), with adjusted EBITDA rising by 15% to €1.13 billion. The company also noted a continued reduction in structural debt, with net debt excluding working capital falling to €1.03 billion, marking a significant decrease of €176 million compared to March 2023.
"Our record 2023/24 financial results reflect our ability to benefit from changes in the market and adapt efficiently to them, Tereos managing director Olivier Leducq said at the time. "It is a testament to the ambitious collective effort between cooperative members and employees. Encouraged by these results, we are now focused on the future as we take bold and pragmatic steps to continue to develop new growth drivers.”
