The Competition & Markets Authority has launched an investigation into Arla Foods Ingredients’ proposed acquisition of Volac’s Wales-based whey nutrition business.
The regulator’s merger inquiry will investigate whether the deal will result in a substantial lessening of competition in the dairy ingredients sector, under the provisions of the Enterprise Act 2002.
The deal to buy Volac’s whey factory in Felinfach, Ceredigion, was announced in April, with Arla’s ingredients business saying the acquisition would allow it to transform the site into a global production hub and “a cornerstone of an enhanced product offering in the performance, health and food sectors”.
The Volac business was “a pioneer in the use of whey protein for performance nutrition and has a wealth of expertise as well as an incredibly talented team”, said Arla Foods Ingredients VP and MD Luis Cubel at the time of the deal.
“It shares our commitment to helping companies worldwide harness the full potential of whey, and we’re hugely excited about the opportunities that lie ahead,” he added.
Volac Whey Nutrition’s portfolio includes the Volactive range, while Arla Foods Ingredients makes the Lacprodan range of sports nutrition products including RTDs, powder shakes and protein bars.
The CMA has set a deadline of 13 November for a decision on whether it will proceed to a more in-depth, phase two probe into the deal. Arla declined to comment.
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