Tea and coffee drinkers risk paying higher prices for sugar following the merger of two of the country’s largest producers
Tea and coffee drinkers risk paying higher prices for sugar due to the merger of two of the country’s biggest producers, regulators have warned.
Tate & Lyle owner T&L Sugars (TLS) announced plans to buy Whitworths late last year.
But the Competition and Markets Authority (CMA) yesterday threatened to block the deal amid fears it would drive up sugar prices.
It said TLS’ takeover of part of co-operative conglomerate Tereos, which owns Whitworths, “could lead to a significant reduction in competition” and gave the companies five working days to provide a solution.
TLS refines and distributes sugar and similar products to supermarkets, wholesalers, hotels and cafes in the United Kingdom.
Leaving a bitter taste: the Competition and Markets Authority has threatened to block the merger deal amid fears it will drive up sugar prices
The Tereos part plans to buy parcels and distribute sugar to British buyers. The CMA said the only other competitor supplying packaged sugar is British Sugar, a subsidiary of Associated British Foods, which also owns Primark.
Supermarkets could end up paying more for sugar, which could raise prices on shelves for customers, the report said.