A mega-merger of European frozen pastry giants Vandemoortele and Délifrance has been cleared by the Competition & Markets Authority (CMA), after the businesses agreed to sell off Délifrance’s UK viennoiserie business.
Two of Délifrance’s French factories, in Avignon and Béthune, will be sold to an approved bidder as part of the bargain with regulators.
While announced in spring 2025, the merger has subsequently been held up in antitrust investigations in both Europe and the UK, as regulators probed whether the merged €2.4bn (£2.1bn) bakery business would have undue power over retailers.
A phase one investigation launched by the CMA in October found danger of a “substantial lessening of competition” as the merged entity would be the largest supplier to the UK of frozen viennoiserie – croissants, pain au chocolats and other laminated pastries – by a “considerable margin”.
The CMA said the business’ dominance could potentially result in higher prices for shoppers.
“Our initial investigation found this deal could have led to higher prices or reduced quality for supermarkets and foodservice customers across the UK, so we welcome steps taken by the businesses to address our concerns,” said CMA senior director for mergers Sorcha O’Carroll.
“By offering to sell the relevant Délifrance UK business together with two production facilities to an approved purchaser, we believe this will protect choice and maintain quality, helping ease the pressure on businesses and the households they serve.”
The European Commission had likewise raised concerns over the deal’s potential to impact competition in France and Italy, but said the factories’ sale “fully addressed” its concerns.
“The capacity and actual production volumes of the divested plants would be enough for a (suitable) buyer to exercise sufficient competitive pressure on the merged entity,” it said.
“In addition, by enabling the transfer of relevant customer contracts to the buyer, the divestment will establish the buyer company as a strong independent competitive force in the markets concerned.”
Vandemoortele employs around 3,500 people across 28 production sites throughout Europe and the US, turning over around €1.4bn annually in its bakery division alone. Owned by a farmer co-operative, Délifrance employs more than 3,200 staff, and turns over around €930m selling frozen bakery products in Europe and Asia.
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