French food giant Danone is facing scrutiny from the UK competition regulator over its proposed acquisition of meal replacement brand Huel, after the Competition and Markets Authority (CMA) launched an invitation to comment on the deal.
The CMA said on Wednesday it was seeking views from interested parties on the anticipated acquisition by Danone Holdings (UK) of Huel Limited, as part of the first stage of its information-gathering process ahead of a formal investigation.
The regulator said the deadline for submissions is 10 June and confirmed it has received the necessary information from the companies to begin pre-notification discussions.
Danone announced in March that it had entered into a definitive agreement to acquire Huel, describing the move as part of its ‘Renew Danone’ strategy aimed at expanding further into the fast-growing functional and complete nutrition categories.
Huel, which has built a strong presence in the UK, Europe and the US with its ready-to-drink shakes, powders and nutrition bars, has seen rapid growth through both direct-to-consumer sales and retail expansion.
At the time of the deal announcement, Danone chief executive Antoine de Saint-Affrique said the acquisition would strengthen the group’s position in “the new and fast-growing nutritionally complete space”.
Huel chief executive James McMaster said the partnership with Danone would give the business greater infrastructure, distribution and R&D capabilities to support further international growth.
The proposed acquisition comes as demand for convenient, protein-rich and functional nutrition products continues to rise.