Danone €1bn takeover of Huel approved by watchdog
French firm says the acquisition of Huel will help it grow in the nutritional sector.
The competition regulator has given its approval for Danone's €1 billion acquisition of the British meal supplement company, Huel.
Following a review, the Competition and Markets Authority (CMA) greenlit the €1 billion (£864 million) deal.
Huel, established in 2015 by Julian Hearn in Hertfordshire, specializes in nutritionally complete food products designed to shorten meal preparation and deliver vital nutrients. Its initial offering was a powder that could be mixed into a complete nutritional shake.
The French food and drink giant, Danone, stated that this acquisition will bolster its presence in the nutrition sector. For Huel, the deal is expected to fuel its growth aspirations and accelerate its international expansion.
Danone, which agreed to purchase Huel in March, boasts a diverse product portfolio in the UK. This includes baby milk brands Aptamil and Cow & Gate, yogurt brands Activia and Actimel, and water brands Evian and Volvic.
The Huel brand, founded by Julian Hearn, has experienced rapid growth, broadening its product line to encompass plant-based ready meals, nutrition bars, and health drinks.
Steven Bartlett, known from Dragons' Den and as a podcaster, previously served as a director for the nutrition brand.
Huel has faced scrutiny from the UK advertising watchdog in the past, which has prohibited some of its advertisements for making "misleading" claims. One such instance involved an advert that made deceptive claims regarding the cost savings of substituting a regular diet with meal replacement shakes, according to the watchdog.
The CMA had invited interested parties to submit comments on the deal, particularly concerning any potential impact on market competition. The regulator's decision to clear the merger indicates its satisfaction with the deal proceeding as is.
Both Danone and Huel have been contacted for comment.