The Competition and Markets Authority (CMA) has referred the proposed acquisition of Délifrance by Vandemoortele to an in-depth Phase 2 investigation after efforts to resolve competition concerns failed.
The watchdog said the referral follows the expiration of a deadline for the companies to address issues identified during the initial Phase 1 review.
Remedy deadline passes
In December 2025, Vandemoortele proposed a remedy involving the sale of two production facilities in France, located in Avignon and Béthune, along with Délifrance’s UK laminated dough business. The proposed divestment was intended to alleviate competition concerns in the UK market.
However, the CMA said Vandemoortele did not submit a proposed buyer for approval before the deadline, meaning the remedy could not be assessed.
As a result, the authority has decided to escalate the case to a Phase 2 investigation.
Concerns in frozen pastry supply
Both companies supply frozen viennoiserie products—including croissants and pains au chocolat—to supermarkets and foodservice customers, which bake the products on site before selling them to consumers.
During the Phase 1 review, the CMA concluded the merger could make Vandemoortele by far the largest supplier of frozen viennoiserie products in the UK, raising concerns that the deal could significantly reduce competition.
The regulator warned this could potentially lead to higher prices or reduced quality for supermarket and foodservice customers.
Independent panel to investigate
The Phase 2 review will be conducted by an independent panel of experts, who will examine the competition issues in greater depth and determine whether the merger should be cleared, blocked, or approved with remedies.
The CMA said it had worked closely with Vandemoortele during the initial review to explore possible solutions, but no formal remedy package was ultimately submitted.
