The UK Competition and Markets Authority (CMA) has determined that Aramark Limited’s acquisition of a 90% stake in Entier Limited poses a realistic prospect of a substantial lessening of competition (SLC) in the supply of outsourced offshore catering and ancillary facilities management services in the United Kingdom Continental Shelf (UKCS).
The transaction, completed on 24 January 2025 and referred to by the CMA as the Merger, combines two leading providers of offshore catering services. The CMA’s investigation has focused on the significant overlap in their activities servicing offshore customers, where both companies are prominent suppliers.
Market Context and Parties Involved
Aramark and Entier provide a range of catering and ancillary facilities management services offshore, including housekeeping, accommodation management, laundry, waste management, and emergency support. The UKCS offshore catering market, characterised by its specialised nature and limited number of suppliers, is the main area of concern for the CMA.
Following the acquisition, the combined entity holds approximately 60% of the supply share within the UKCS. The only other major competitor is ESS, which together with the Merged Entity accounts for over 90% of the market. Other providers are relatively small and do not present a significant competitive constraint.
CMA’s Investigation and Findings
The CMA conducted a comprehensive review involving internal documentation, bidding data, and market analysis. It also engaged with customers and competitors to assess the competitive dynamics post-merger.
The evidence gathered indicates that Aramark and Entier were close competitors prior to the acquisition, frequently bidding against one another for offshore contracts. The consolidation is expected to substantially reduce competitive pressure, enabling the Merged Entity to exercise greater market power. The CMA also noted that self-supply is not a feasible alternative for the majority of customers, further limiting competitive options.
Next Steps
Given these findings, the CMA has identified a realistic prospect of an SLC arising from the Merger. Aramark has been invited to propose undertakings in lieu of a reference (UILs) by 29 July 2025, which could address the competition concerns identified. Should Aramark fail to submit acceptable remedies, or if the CMA deems the proposed undertakings inadequate, the Merger will be referred for a more detailed phase 2 investigation under sections 22(1) and 34ZA(2) of the Enterprise Act 2002.
