March 8 (Reuters) - Britain's antitrust regulator said on Friday that T&L Sugars's purchase of Tereos UK & Ireland's assets could result in higher sugar prices for UK shoppers.
T&L Sugars, which refines and distributes packaged sugar across supermarkets in the UK, under brand name Tate& Lyle bought Tereos' consumer facing operations in the UK and a distribution facility in West Yorkshire in November 2023.
The deal, if approved, would see two of the three sugar suppliers in the UK merge, leaving Associated British Food's British Sugar as its only competitor, the Competition and Markets Authority (CMA) said.
"The supply of sugar to grocery retailers in the UK is already highly concentrated. This deal would bring together two of the three players in the UK sugar sector, reducing competition and choice further for people and businesses," said Sorcha O'Carroll, senior director of mergers at the CMA, in a statement.
The deal could be referred to a deeper probe if the parties fail to offer remedies within five working days, CMA added.
Reporting by Prerna Bedi in Bengaluru; Editing by Eileen Soreng and Rashmi Aich
Source: Reuters