UK Competition Authority to Review Danone's €1bn Acquisition of Huel

The UK’s Competition and Markets Authority (CMA) has launched a phase 1 review into Danone’s €1bn acquisition of Huel. The investigation stems from concerns that the deal could significantly reduce competition in the functional nutrition market. Announced in March, the acquisition is part of Danone’s strategic expansion into functional nutrition.

As part of the review process, the CMA will gather industry input to determine whether a full-scale investigation is necessary. The authority has set a deadline of September 11 for deciding on the progression of the inquiry. The current probe reflects the CMA’s recent trend towards a more business-friendly approach under the leadership of former Amazon UK head Doug Gurr, appointed earlier this year.

In the previous year, the CMA reviewed and cleared 36 mergers without blocking any, marking the first time since 2017 that no deals were obstructed within a calendar year. These statistics were compiled by US law firm Simpson Thacher & Bartlett and reported by the Financial Times.

Danone aims to leverage Huel’s meal replacement drinks to enhance its portfolio, bridging its established dairy brands, such as Alpro, Activia, and Actimel, with its clinical nutrition segment. Huel, which marks its 10th year of operation, reported a 40% increase in profits to £19.4 million, alongside a 19% growth in revenue, reaching £254 million last year.