Competition watchdog to probe Danone's €1bn takeover of Huel

(Sharecast News) - The UK's competition watchdog has launched a probe into Danone's €1bn acquisition of meal supplement maker Huel, it was confirmed on Wednesday. The French food and drink giant announced in March that it was buying the British firm, which is best known for its meal-replacement shakes. At the time, Danone - the owner of Evian, Aptamil, Alpro and Activia, among others - said the acquisition would enhance its presence in the fast-growing functional nutrition market.

The Competition and Markets Authority launched a consultation shortly afterwards, however, inviting interested parties to comment on what impact the deal could potentially have on competition in the UK, and on Wednesday confirmed that it was now pressing ahead with an initial phase 1 merger inquiry.

In a brief statement, it said the inquiry will assess whether the planned deal meets requirements under the Enterprise Act 2002.

The CMA has until 11 September to decide whether to refer the deal to a phase 2 investigation.

Danone and Huel did not immediately respond to a request for comment.