The UK Competition and Markets Authority has ordered Aramark to reverse its acquisition of Entier, concluding that the transaction would significantly weaken competition in the market for offshore catering and facilities management services on the UK Continental Shelf.
Aramark, a multinational food and facilities management group, acquired a 90% stake in Aberdeen-based Entier in January 2025. Both companies are key suppliers of catering and related services to offshore oil and gas installations operating in the UK Continental Shelf and surrounding North Sea areas. Following a detailed investigation, the CMA determined that the deal brought together two of the three most important suppliers in this highly specialised market.
The authority found that offshore operators place exceptional importance on catering services, not only for operational reasons but also for the wellbeing and morale of workers who face harsh and isolated conditions at sea. By removing one of the few strong alternatives available to customers, the merger was found to materially reduce choice. Market evidence showed that Aramark and Entier were regularly viewed as must-have bidders in competitive tenders, and that remaining competitors were unlikely to provide a comparable constraint on the merged business in the foreseeable future.
On this basis, the CMA concluded that the transaction would be likely to lead to worse outcomes for customers, including higher prices or diminished service quality, amounting to a substantial lessening of competition under UK merger control rules. Although Aramark initially explored remedies after the CMA raised provisional concerns, it ultimately withdrew its proposal. The CMA nevertheless assessed a range of potential solutions and concluded that partial fixes would be insufficient to restore effective competition.
The authority therefore decided that the only effective remedy is a full divestment of Entier to a buyer approved by the CMA. According to the CMA’s inquiry chair, Richard Feasey, this outcome reflects the central role that competitive pressure plays in ensuring high standards and value for offshore catering services in a demanding operating environment.
Aramark now faces a 12-week period in which the CMA may either accept binding undertakings or issue a final order compelling the sale. The divestment obligation applies to Entier’s UK business but does not extend to its Australian operations, which were not found to raise competition concerns. The decision highlights the CMA’s willingness to require full unwinding of completed transactions where competition in critical niche markets is found to be at risk.