A MERGER between Scotland’s largest privately-owned caterer and a major US food services firm is under investigation.
The multi-billion-pound US firm Aramark’s takeover of the Aberdeenshire-based business, Entier, is under an in-depth investigation by the Competition and Markets Authority (CMA).
The CMA announced its second phase of the investigation into the deal, which saw the US firm buy a 90% stake in the Scottish company back in February for an undisclosed sum.
The business watchdog said it was concerned the acquisition could lead to “substantial lessening of competition” in the sector.
Both firms provide catering and ancillary facilities management services to the offshore energy sector in the North Sea, which includes providing food and housekeeping for workers on oil rigs and building wind farms.
In 2024, Entier posted a turnover of approximately £83 million worldwide, with around £70m from its operations in the UK.
The firm, located in Westhill, just outside Aberdeen, employs around 700 staff and operates across the UK, including in Australia, Trinidad, Canada, Singapore, and Saudi Arabia.
Aramark, the US food service giant, recorded a turnover of £14 billion in 2024.
Following the completion of phase one of the investigation, CMA noted its concern that the deal may lead to higher prices and/or a lack of choice for companies that need to provide on-site catering to their staff based at sea.
Aramark and Entier did not offer any undertakings in lieu; therefore, the case has been referred to an in-depth phase two inquiry, led by an independent panel of experts.
The investigation is scheduled to run until January next year.
If the investigation into the merger deems the deal likely to harm competition, the CMA has the power to block it or impose remedies to address those concerns.
A spokesperson for Aramark said: “We are engaging constructively with the CMA and remain confident that this transaction is a positive development for customers.
“We look forward to continuing our dialogue with the CMA during phase two.”
Entier has been contacted for comment.
