News
BakeAway acquisition of Jus-Rol blocked again but firm will appeal to Supreme Court
In September 2023, the Competition Appeal Tribunal upheld the initial decision by the Competition and Markets Authority (CMA) to unwind the acquisition due to concerns it would “substantially lessen competition”.
In response, BakeAway launched a new appeal but that was dismissed by the Court of Appeal on 11 April 2024, with the court agreeing with the Competition Appeal Tribunal’s finding that the CMA was “rational and fair” in its merger review.
BakeAway, which is owned by French firm Cérélia, announced the acquisition of bakery brand Jus-Rol from General Mills in January 2022, only for a subsequent investigation to be launched.
In January 2023, the CMA concluded following a six-month investigation that the “only way to preserve the degree of competition and choice for consumers is for the Jus-Rol business to be sold to an independent buyer”, and that decision has now been backed during two separate appeal processes.
BakeAway to appeal to Supreme Court
In response to this latest decision, BakeAway has said it will seek to appeal to the Supreme Court and therefore will not take steps to commence the sale process pending the resolution of that by the Supreme Court.
The business maintains that its acquisition of Jus-Rol, if allowed, would help create a more innovative product market for UK consumers and a more price competitive category.
“We’re very disappointed with the dismissal by the Court of Appeal and still believe that the pastry and dough category is in desperate need of innovation and investment,” said Jan Boers, managing director at BakeAway.
“In line with the UK government’s ambition to drive growth we purchased the Jus-Rol brand and brought production back to the UK, to the new factory we built in Corby.
“We sought to create a more innovative market offer for UK consumers and a more price competitive category by bringing together our expertise in pastry and dough and the strength of the Jus-Rol brand.”
In other news, Glanbia is set to acquire US business Flavor Producers in a deal initially worth $300m.
