The Competition and Markets Authority (CMA) has cleared the anticipated acquisition of meal replacement brand Huel by French food giant Danone.
The competition watchdog confirmed today (20 August) that it has cleared Danone Holdings (UK)’s proposed acquisition of Huel Limited following its phase 1 merger inquiry.
The CMA launched its merger inquiry in July, giving it until 11 September to decide whether the deal raised sufficient competition concerns to warrant a more in-depth phase 2 investigation. The transaction has now been cleared without being referred to phase 2.
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.