The CMA has found that Tereos failed to comply with a requirement to produce information in connection with its recent investigation into Tereos’ deal with T&L Sugars
The Competition and Markets Authority (CMA) has imposed a fine of £25,000 on Tereos SCA and Tereos United Kingdom and Ireland Limited (together Tereos) for failing to provide relevant information in relation to the T&L Sugars/Tereos merger inquiry.
As part of the CMA’s phase 2 investigation, a notice was sent to Tereos under section 109 of Enterprise Act 2002 (the Act) requiring the production of certain minutes and internal documents in relation to its board and corporate governance. Tereos responded to the notice, however, following further enquires by the CMA it was found that Tereos failed, without reasonable excuse, to provide a full response.
In particular, the CMA Inquiry Group found that Tereos’ interpretation of the scope of the notice was unjustifiably narrow and untenable when viewed in the context of the object of the merger inquiry and that the failure was capable of having an adverse impact on the CMA’s investigation.
In order to reach sound decisions that benefit consumers and the UK economy as efficiently as possible, it is essential that the CMA is able to gather all the evidence it requires. Parties must therefore comply, on time and in full, with requests for information from the CMA during an investigation.
Richard Feasey, Chair of the independent inquiry group which led the investigation, said:
Currently, where there is a failure to comply, without reasonable excuse, with a requirement of a notice under section 109 of the Act, the maximum fixed penalty the CMA is able to impose is £30,000. This is due to increase to 1% of the total value of a business’s worldwide turnover once amendments introduced by the Digital Markets, Competition and Consumers Act 2024 (DMCCA) come into force.
For more information, visit the T&L Sugars / Tereos merger inquiry page.
Notes to Editors