The UK’s Competition and Markets Authority (CMA) has officially referred the merger between Vandemoortele and Délifrance for an intensive Phase 2 investigation. This decision follows the expiration of a critical deadline for the companies to resolve competition concerns regarding the supply of frozen pastries to supermarkets and foodservice providers.
The investigation focuses on the market for frozen viennoiserie, including staples like croissants and pains au chocolat. During its initial Phase 1 review, the CMA concluded that the merger could result in Vandemoortele becoming the largest supplier in the UK by a significant margin. This dominance raised alarms about a potential “substantial lessening of competition,” which the regulator warns could lead to higher prices or lower quality for UK consumers.
To avoid a deeper inquiry, Vandemoortele had previously proposed selling Délifrance’s UK laminated dough business along with two French production sites in Avignon and Béthune. While the CMA initially indicated that this remedy might be sufficient, the transition to Phase 2 was triggered because Vandemoortele failed to formally submit a proposed buyer before the legal period to resolve these concerns expired.
The case will now be handled by an independent panel of experts. This group will conduct a more granular analysis of the deal’s impact on the UK market, investigating whether the consolidation of these two major players unfairly tips the scales. The panel has been given a deadline of October 6, 2026, to publish its final report and decide whether the deal requires significant modifications or should be blocked entirely.
For the UK’s retail and hospitality sectors, the outcome of this probe will determine the future of the frozen bakery supply chain. While the businesses have already begun to integrate, the CMA’s findings could force a reversal or significant divestments to ensure that the “bake-off” sections in local grocery stores remain competitively priced. For now, the merger remains under the microscope as regulators weigh corporate growth against consumer protection.
