Vandemoortele proposes asset divestment to secure UK approval for Délifrance acquisition
The proposed divestment is intended to resolve potential issues related to market concentration in the supply of frozen bakery products and pave the way for completion of one of the European bakery sector’s most significant transactions.
UK – Belgian bakery group Vandemoortele has proposed selling its frozen pastry manufacturing plant in Worcester, England, as a structural remedy to address UK competition concerns and secure regulatory clearance for its acquisition of the French bakery rival Délifrance.
The strategic move is aimed at resolving antitrust concerns raised by the Competition and Markets Authority (CMA), which warned that the original deal could significantly reduce competition within the British bakery sector.
The acquisition of Délifrance was first announced in March 2025 and, if completed, would create a combined bakery group valued at approximately €2.4 billion (US$2.73B).
However, the deal has faced sustained regulatory scrutiny on both sides of the Channel since its announcement.
In December 2025, Vandemoortele pledged to divest two Délifrance frozen laminated dough production facilities in France, one in Avignon in the south and another in Béthune in the north, to secure provisional approval from the European Commission.
That commitment was accepted by the European Commission, which concluded that the structural remedy fully addressed competition concerns in France and Italy.
In the United Kingdom, the CMA’s Phase 1 investigation concluded that a full merger would create a dominant market leader in the supply of frozen laminated dough products, such as croissants, Danish pastries, and pains au chocolat, to supermarkets, foodservice providers, and in-house bakeries.
Watchdogs expressed concerns that this consolidation could inevitably lead to higher consumer prices and lower product quality.
To secure regulatory approval and avoid a prolonged Phase 2 review, Vandemoortele put forward a remedy package. Rather than a straightforward UK factory sale, the proposed remedy focuses on the structural divestment of Délifrance’s dedicated UK laminated-dough business.
This package includes the transfer of all associated UK customer contracts, sales relationships, and distribution assets, as well as the divestment of two primary French production facilities in Avignon and Béthune that currently manufacture products bound for the British market.
Vandemoortele initially proposed Italian bakery company Sammontana as the upfront buyer for the divested assets.
By carving out these production sites and transferring the existing British customer base to an independent competitor, Vandemoortele intends to replicate the competitive pressure previously exercised by a standalone Délifrance.
A similar structural remedy package was provisionally accepted by the European Commission to resolve parallel competition concerns in France and Italy.
The CMA has launched a public consultation period to evaluate whether the proposed asset and contract transfers are sufficient to maintain a healthy, competitive marketplace.
While the regulatory body continues its detailed assessment, final approval hinges entirely on the prospective buyer’s operational capacity to restrain prices independently.
If finalized, the deal will allow Vandemoortele to absorb the remainder of Délifrance’s international footprint, advancing its long-term expansion strategy across European and Asian frozen bakery markets.
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