Danone's €1bn Acquisition of Huel Under CMA Review for Competition Concerns

Danone's proposed €1bn acquisition of the British food and drinks brand Huel is undergoing scrutiny by the UK's Competition and Markets Authority (CMA). The CMA has begun its preliminary process by inviting market views on the acquisition, which is intended to expand Danone's footprint in the functional nutrition sector.

The CMA, responsible for ensuring competitive practices in the UK, has not yet initiated a formal investigation. Instead, it has issued an invitation for interested parties to submit their views on how the transaction might impact competition within the UK market. The deadline for submissions is set for 5pm BST on June 10, 2026.

Danone's acquisition of Huel aligns with its 'Renew Danone' strategy, as stated by Danone CEO Antoine de Saint-Affrique, who expressed enthusiasm about the deal. Huel's CEO, James McMaster, also highlighted the excitement surrounding the merger. The acquisition aims to bolster Danone's presence in the fast-growing Complete Nutrition sector and enhance international expansion.

The CMA's scrutiny reflects a broader trend of increased regulatory attention on significant multinationals acquiring fast-growing challenger brands in health-focused categories. This is particularly relevant in sectors like meal replacements and functional nutrition, where Huel has established a strong independent position.

The outcome of the CMA's review could range from outright approval to conditional remedies, delays, or even a more in-depth Phase 2 investigation. Danone and Huel have yet to comment on the ongoing review process.

Industry observers are closely watching the developments, as the review may influence how future deals in the functional nutrition and health-focused food sectors are structured and communicated.