The United Kingdom's Competition and Markets Authority (CMA) has given the green light to Danone's proposed acquisition of Huel, a Tring-based nutrition company. The approval means the French food conglomerate can proceed with its planned takeover of the rapidly growing Huel brand.
Danone, which owns a portfolio of familiar products in the UK including Aptamil and Cow & Gate baby milk, Activia and Actimel yogurts, and Evian and Volvic water, agreed to buy Huel in March. The acquisition is intended to help Danone expand its presence in the nutritional sector.
Huel, known for its plant-based meal replacements, has diversified its product line to include ready meals, nutrition bars, and health drinks. The company has experienced significant growth since its inception. Former director of the brand included 'Dragons' Den' personality and podcaster Steven Bartlett.
This regulatory approval follows a period where the CMA invited comments from interested parties regarding potential competition concerns. The watchdog's decision indicates it is satisfied that the merger will not significantly lessen competition in the market.
Huel has previously faced scrutiny from advertising standards bodies. The UK advertising watchdog has banned some of its advertisements for containing "misleading" claims. One such instance involved advertisements that Huel ran regarding the cost savings associated with replacing a traditional diet with their meal replacement shakes. The watchdog determined these claims were not substantiated.
Both Danone and Huel have been approached for comment. The Tring-based company's nutritional products have gained popularity for their plant-based formulations and convenience.