- The CMA has cleared Danone’s £864 million acquisition of Huel.
- The watchdog had examined whether the deal could weaken competition in the UK.
- The takeover will give Danone a fast-growing British nutrition brand with an expanding international presence.
Danone is now one step closer to taking control of Huel, after Britain's competition watchdog cleared its proposed £864 million acquisition of the British nutrition brand.
The Competition and Markets Authority (CMA) launched its initial merger inquiry in July to examine whether the takeover could reduce competition in the UK. After its review, the regulator decided the deal did not need to move to a more detailed investigation.
The companies agreed the deal in March. Danone said the acquisition would strengthen its position in the growing functional nutrition market, while giving Huel access to the French group's international scale and distribution network.
For Huel, the deal marks a significant change for a business that began in Hertfordshire in 2015 selling nutritionally complete meal products online.
Why did the CMA get involved?
The CMA's role was to establish whether combining the two businesses could leave consumers with less choice or weaken competition.
Danone already has a sizeable food and nutrition portfolio in Britain, including Activia, Actimel, Aptamil, Cow & Gate, Evian and Volvic. Huel, meanwhile, has built a strong position in complete nutrition through meal powders, ready-to-drink products, snack bars and other plant-based foods.
The regulator opened an initial review in July and invited businesses and other interested parties to raise potential competition concerns.
The clearance means the CMA does not believe the transaction, in its current form, requires a deeper Phase 2 investigation.
That does not mean the takeover has completed yet. Danone said the transaction remains subject to the final completion conditions.
From Hertfordshire startup to global brand
Huel was founded by Julian Hearn and nutrition specialist James Collier in 2015, with the idea of providing nutritionally complete food that could offer a convenient alternative to traditional meals.
The company has since moved well beyond its original powders, expanding into shakes, ready-to-drink products, meals and snack bars. Its products are now sold in more than 25,000 stores worldwide, giving Danone a business with an established international footprint.
The brand has also attracted high-profile backers, including actor Idris Elba and broadcaster Jonathan Ross. Entrepreneur and Dragons' Den star Steven Bartlett was previously a director.
Danone's interest is largely about the growth potential of the complete nutrition market and Huel's direct-to-consumer model. The French group has said combining Huel's digital capabilities and customer base with its own global reach and nutrition expertise could accelerate international expansion.
The deal could also deliver a major payday for Huel's founder. Companies House filings indicate Hearn could receive around £400 million from the transaction.
For Danone, the CMA's decision removes one of the main regulatory hurdles to the takeover.
For Huel, it brings the brand closer to becoming part of a much larger food group — potentially giving a business that started as an online meal-replacement company a much bigger route into international markets.
