Vandemoortele required to sell UK pastry facility after CMA ruling
The legally binding divestiture package serves as the mandatory structural remedy required to clear Vandemoortele‘s acquisition of French frozen bakery peer Délifrance.
UK – Vandemoortele must sell its laminated dough manufacturing plant in Worcester and its UK sales head office in Staines-upon-Thames following a final structural ruling by the Competition and Markets Authority (CMA).
The order comes as part of a phase-two antitrust investigation into Vandemoortele’s acquisition of commercial bakery peer Délifrance.
The regulatory watchdog concluded that retaining both operational footprints would create an overly dominant market position, substantially reducing competition in the wholesale supply of frozen viennoiserie goods across the country.
Both Vandemoortele and Délifrance serve as primary suppliers of frozen pastries, including croissants, pains au chocolat, and Danish pastries, to UK grocery chains, in-store supermarket bakeries, and foodservice operators.
The regulator determined that without structural remedies, combining the two portfolios would make Vandemoortele the nation’s largest single supplier of frozen viennoiserie products.
This concentration raised significant concerns regarding potential price increases, reduced product choices, and diminished quality for commercial buyers and retail consumers.
The investigation reached an expedited conclusion nearly seven weeks ahead of its statutory deadline.
This fast-track decision was enabled after Vandemoortele formally conceded that the merger raised competition issues in the frozen laminated dough segment, allowing the CMA’s independent inquiry panel to negotiate remedies earlier than usual.
Under the binding agreement, Vandemoortele must divest the fully equipped Worcester production facility, along with its Staines-upon-Thames sales office, to an independent purchaser approved by the watchdog.
To ensure the divested business can operate as a viable standalone competitor immediately, the mandatory sale package includes all associated commercial contracts, staff, production assets, customer relationships, and necessary intellectual rights.
Vandemoortele will also provide transitional manufacturing and operational services during the handover phase to protect supply continuity for supermarket and café buyers.
Martin Coleman, chair of the CMA inquiry group, highlighted that transferring these assets to a distinct market player maintains vital wholesale competition and guards against price spikes for everyday food items.
Vandemoortele will maintain its overall commercial footprint in the UK market while the regulator oversees the divestment process.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
