T&L Sugars’ deal to buy a UK packing and distribution site from France’s Tereos is set to be studied by the country’s competition watchdog.

The Competition and Markets Authority (CMA) revealed today (12 January) it will “begin an investigation for the purposes of deciding whether to make a reference for a phase 2 investigation” into the deal.

The transaction was announced in November when Tereos, the France-based sugar refiner, sold its site in Normanton, West Yorkshire, as well as its business-to-consumer activities, to London-headquartered T&L Sugars.

Financial details were not disclosed.

The facility packs and distributes white granulated, baking and specialty sugars to food retailers and wholesalers in the UK, under the Whitworths sugar brand and private labels.

In a statement, the French company wrote at the time: “Tereos is very pleased that TLS is acquiring the UK site and securing the future for all the experienced employees, the factory and storage facilities. It will enable the B2C market in the UK to maintain the same level of quality and services with a warranty of supply.”

The CMA stated the deadline to announce its decision on whether to refer the merger for a Phase 2 investigation is 8 March.

Tereos plans to keep the industrial B2B activities, which will continue as TUKI.

T&L Sugars, owned by ASR Group International, imports raw cane sugar and refines it into sugar for consumption at its refinery in London. This sugar is then supplied to industrial customers or packed and distributed to customers in the B2C channel under British private labels, as well as under the Tate & Lyle brand.