After merger probe, UK watchdog orders Aramark divest Entier

The British Competition Watchdog ordered Aramark, a U.S. food services provider, to sell the offshore catering company Entier on Thursday. It ruled that this acquisition would harm competition in North Sea oil and natural gas platforms.

After a?in-depth examination, the Competition and Markets Authority stated that the deal combined two of the only three major offshore caterers and facilities managers in the UK Continental Shelf.

The company said that the merger completed by January 2025 could limit customer choice, increase prices and lower service quality.

CMA reported that Aramark, which acquired 90% of Entier's shares, chose not to offer a solution and withdrew a first proposal. This led the regulator to conclude that only the full sale to an "approved" buyer could restore competition.

In a statement,?Aramark stated that they were disappointed with the CMA's decision and intended to appeal.

The provider of food services and facilities said that the merger with Entier was a "good" investment to grow its footprint in the United Kingdom, as well as benefiting clients on both sides of the North Sea.

The CMA has now 12 weeks to either accept final undertakings by Aramark, or issue a definitive order ordering the company to sell Entier in Aberdeen. Reporting by Yamini Kalya and Rishab Shju in Bengaluru. (Editing by Krishna Chandra Eluri, Mark Potter and Mark Potter).

(source: Reuters)