CMA grants green light to Arla Foods Ingredients’ acquisition of Volac’s Whey Nutrition business

The UK’s Competition and Markets Authority (CMA) gives Arla Foods Ingredients’ purchase of Volac’s Whey Nutrition business the greenlight to move forward without a second phase to the authority’s initial investigation.

“This is a very welcome decision at a time when demand for high-quality whey ingredients is growing. It means we’re a step closer to a significant acquisition that would consolidate our position as a leader in the whey nutrition space,” says Luis Cubel, group VP and managing director of Arla Foods Ingredients. “We will now move forward with the formal process necessary to make Volac’s Whey Nutrition business part of Arla Foods Ingredients.”

“Once that is complete, we will be able to comment further on the many advantages of bringing together these two major manufacturers of whey ingredients — not just for both companies, but also for our customers and the industry as a whole.”

CMA investigation

This approval comes after a review following the acquisition agreement signed by the two companies in April of this year — a move Arla Foods Ingredients said would boost its position in the performance nutrition space and give it access to Volac’s Felinfach global production hub.

In September, the CMA revealed it would assess whether the merger might create a relevant merger situation under the Enterprise Act 2002 and if so, whether it could significantly lessen competition within any UK market for goods or services. To aid in this assessment, the CMA sought comments from any interested parties on the potential impacts of the transaction.

However, the CMA now states that the merger may continue.

“We were always confident that Arla Foods Ingredients had the necessary expertise and values to take our Whey Nutrition business to the next level, and we are delighted to have reached this important step in the acquisition process,” reveals James Neville, joint owner of Volac.

“It’s great news for Volac Whey Nutrition, and for the whey ingredients sector, that these two innovative companies have been allowed to join forces.”