Overview
- The Competition and Markets Authority said on Wednesday there is a realistic prospect that the merger would substantially lessen competition in parts of the UK condiment and spice market.
- The regulator finds the combined group would become by far the largest supplier of dry ingredient mixes and dry sauces, concentrating market power in those product lines.
- The CMA judged rivals such as Nestlé’s Maggi, Premier Foods’ Bisto and supermarket own‑brands impose only limited constraint on the merged firm, reducing the regulator’s confidence that competition would restrain price or choice.
- The watchdog did not raise concerns about mustard because shoppers and retailers treat English, French and American mustards as distinct products, and it has asked the parties to offer undertakings by 18 November that could include asset sales such as Colman’s.
- The tie‑up, first announced in March and valued at about $65 billion, remains under review globally with Unilever and McCormick cooperating with regulators while the CMA’s next step could be an in‑depth phase that may force divestments or other remedies before the deal can close.