Whitby Seafoods has informed the Competition & Markets Authority that it will not be proceeding with its proposed acquisition of Kilhorne Bay Seafoods.
Last week, the CMA said the deal between the two largest scampi suppliers in the UK could result in a “substantial lessening of competition”.
The competitions watchdog referred the deal for an in-depth phase two investigation unless Whitby and Kilhorne Bay offered remedies that fully resolved its concerns.
“Sadly the resources required to engage in a CMA phase 2 investigation are out of all proportion to any potential benefit from the deal, and we have therefore withdrawn our offer for Kilhorne and will not be proceeding with the acquisition,” said a Whitby spokeswoman.
Whitby agreed to buy its rival on 2 May and voluntarily notified the competition watchdog of the agreement. The CMA then launched a review on 8 August.
“As a Yorkshire based, family-owned business with a commitment to providing high-quality, excellent-value breaded scampi to our customers the proposed merger was appealing because our values are highly aligned with Kilhorne, a small family-owned company based in Northern Ireland,” said the spokeswoman.
“Half of Kilhorne’s scampi sales were in Europe and this gave Whitby a unique opportunity to build a new market for our business.”
The CMA had expressed concerns that Whitby facing “even less competition” could result in higher prices and lower-quality products for consumers.
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