The UK competition watchdog has launched an in-depth investigation into Aramark’s takeover of Scottish catering firm Entier, warning the deal could drive up prices and reduce choice for companies operating in the North Sea energy sector.
Aramark, the US food services giant, bought a 90% stake in Entier in January this year. Entier, based near Aberdeen, generated £83 million in turnover in 2024, of which around £70 million came from its UK operations. Both firms supply catering and facilities management services to offshore oil rigs and wind farm projects — a niche market that the Competition and Markets Authority (CMA) said may now face less competition.
After a preliminary review concluded on July 22, the CMA flagged concerns that the merger could lead to a “substantial lessening of competition.” The regulator noted that companies contracting offshore catering services could face higher costs and fewer suppliers to choose from.
Aramark was given the option to propose remedies to address the CMA’s concerns but declined to do so by the July 29 deadline. As a result, the CMA formally referred the case to a Phase 2 probe on Tuesday, under the Enterprise Act 2002.
The deeper investigation, overseen by an independent CMA panel, will examine whether the merger harms competition in a sector vital to the UK’s oil and renewable energy industries. Possible outcomes include clearance, remedies such as divestments, or even a rare order to unwind the deal.
The CMA must conclude its review before August 13, following an extension of the statutory timetable.
