The UK’s competition watchdog has launched a probe into Danone’s €1bn acquisition of Huel over fears it could reduce competition in the sector.
Danone announced the deal in March as part of a company strategy to expand into functional nutrition.
The Competition & Markets Authority announced today (15 July) it would conduct a phase 1 review to determine if the buyout raised significant competition concerns before deciding whether to launch a full-scale investigation by 11 September. It follows the regulator seeking views from the industry about the deal.
Former Amazon UK boss Doug Gurr took over the CMA earlier this year with a clear mandate from the government to be more business-friendly.
The watchdog did not block a single deal in 2025 year after receiving its new directive.
It reviewed and cleared 36 mergers during the year, the first time it has not blocked any deals in a calendar year since 2017, according to data compiled by US law firm Simpson Thacher & Bartlett and reported by the Financial Times.
Danone hopes Huel’s meal replacement drinks can bridge the gap between its strong dairy brands like Alpro, Activia and Actimel, and its push into clinical nutrition, where it supplies products for adults with specific health needs.
Huel’s profits soared 40% last year to £19.4m, while revenue grew 19% to £254m in its 10th year of trading.
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