Key Takeaways:
- UK CMA cleared Danone's $1.2 billion acquisition of Huel on Thursday.
- The regulator declined to refer the deal to a deeper Phase 2 investigation.
- The clearance removes a key regulatory hurdle for Danone's nutrition expansion.
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Danone's $1.2 Billion Huel Deal Clears UK Competition Review
The UK's Competition and Markets Authority cleared Danone's $1.2 billion acquisition of Huel on Thursday, declining to refer the deal to a deeper Phase 2 investigation after an initial probe into whether the combination would lessen competition in the country.
"Based on the information currently available, the CMA would not refer the merger to a more in-depth Phase 2 investigation," the regulator said in its decision, which gives interested parties the opportunity to comment on potential competition concerns.
Danone, the French food group behind Activia yogurt and Evian water, agreed to buy Huel in March in a deal reported to value the British supplier of plant-based food powders and meal-replacement drinks at around one billion euros, or roughly 860 million pounds. The acquisition marks Danone's push deeper into the functional nutrition and plant-based food sectors, where Huel has built a fast-growing franchise since its founding in 2015.
Huel, based in Hertfordshire and founded by Julian Hearn, has expanded rapidly from its original protein powders into shakes, snack bars and ready-to-drink products, and now sells through retail stores as well as directly online. The brand counts celebrity investors including Dragons' Den star Steven Bartlett, actor Idris Elba and broadcaster Jonathan Ross. Danone's UK portfolio spans baby-milk brands Aptamil and Cow & Gate, yogurts Activia and Actimel, and waters Evian and Volvic.
The clearance removes a key regulatory obstacle for the deal, which Danone has said will help it grow in the nutrition sector while giving Huel the resources to drive its international expansion. With the CMA's Phase 1 review now complete, the transaction can proceed toward closing, though the companies have not disclosed a target completion date or the payment structure of the deal.
For Danone, the acquisition strengthens its position in the fast-growing meal-replacement and plant-based nutrition market, where consumers are shifting toward convenient, nutritionally complete products. For Huel's shareholders, the deal locks in a valuation that reflects the brand's rapid retail expansion and its celebrity-backed marketing push. The transaction also signals continued consolidation in the functional food sector, where larger packaged-food groups are acquiring direct-to-consumer nutrition brands to capture younger, health-focused shoppers.
This article is for informational purposes only and does not constitute investment advice.
