UK watchdog orders Aramark to divest Entier after merger probe

Jan 15 (Reuters) - Britain's competition watchdog on Thursday ordered U.S.-based food services provider Aramark ARMK.N to sell offshore catering firm Entier, ruling the acquisition had harmed competition for services to North Sea oil and gas platforms.

Following an in-depth investigation, the Competition and Markets Authority said the deal combined two of only three major suppliers of offshore catering and facilities management services in the UK Continental Shelf.

It said the tie-up completed in January 2025 would leave customers with limited choice and potentially inflate prices and reduce service quality.

Aramark, which acquired a 90% stake in Entier, opted not to offer a remedy and withdrew an initial proposal, the CMA said, prompting the regulator to decide that only a full sale of Entier to an approved buyer would restore competition.

"We are disappointed in the CMA decision and intend to appeal," Aramark said in a statement to Reuters.

The food services and facilities provider added that it viewed the merger with Entier as a "good investment" to grow its footprint in the United Kingdom and benefit clients across the North Sea.

The CMA now has 12 weeks to either accept final undertakings from Aramark or issue a final order requiring the company to sell Aberdeen-based Entier.