Vandemoortele has proposed selling its factory in Worcester, UK, to address competition concerns and gain regulatory clearance for its acquisition of bakery peer Délifrance. The UK's Competition and Markets Authority launched a Phase 2 investigation in April after the Belgium-based group failed to find a buyer for two Délifrance facilities in France it had previously pledged to divest. The proposed Worcester sale includes the plant's assets, contracts, 73 production staff, and customer relationships, and follows the CMA's initial finding that the merger may substantially lessen competition in the supply of frozen laminated dough products. The CMA is consulting on the remedy, with a deadline of 25 June for comments, and may consider amended or alternative proposals. The deal, announced in March last year, would create a €2.4bn bakery group combining Vandemoortele's 28 plants and 3,500 workers with Délifrance's 14 facilities and over 3,200 staff.
Vandemoortele proposed selling its Worcester plant to address competition concerns and gain clearance for the Délifrance acquisition; the CMA is consulting, outcome uncertain.
Délifrance is the target of the acquisition; the proposed divestiture is a remedy to secure approval, but the outcome is uncertain.