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The Competition and Markets Authority (CMA) has raised concerns regarding the proposed acquisition of Délifrance by Vandemoortele Group, citing a realistic prospect of a substantial lessening of competition in the UK market for frozen laminated dough products.

This merger, formalised under a Share Purchase Agreement signed in June 2025, is now under scrutiny as the CMA prepares for a possible Phase 2 investigation unless the parties address these concerns by 15 December 2025.

The CMA's preliminary findings indicate that the merger could create a dominant player in the supply chain of frozen bakery products, such as croissants and pain au chocolat, which are essential offerings for both retail and foodservice sectors.

Currently, Vandemoortele and Délifrance are close competitors in this space, and their combination would position the merged entity as the largest supplier of frozen LD products in the UK, significantly altering the competitive landscape.

In its assessment, the CMA considered a broad spectrum of evidence, including submissions from the parties involved, internal documents and feedback from customers and competitors. The authority concluded that while there are other players in the European market, they would not provide sufficient competitive pressure in the UK post-merger.

The CMA's analysis highlighted that barriers to entry in the frozen LD market are substantial, with significant costs and time required for new entrants to establish production capabilities.

The CMA’s investigation is part of its mandate to promote competition and protect consumer interests. It found that the merger could reduce competition among suppliers, potentially leading to higher prices and less innovation in the frozen bakery sector.

The authority is particularly concerned about the impact on foodservice customers who rely on these products for their offerings.

Vandemoortele and Délifrance now have until 15 December 2025, to propose remedies to alleviate the CMA's competition concerns. If they fail to do so, or if the proposed solutions are deemed inadequate, the CMA will escalate the inquiry to a Phase 2 investigation, which would involve a more detailed examination of the merger's implications.