The United Kingdom’s Competition and Markets Authority (CMA) has opened an initial investigation into French food company Danone’s proposed $1.2 billion acquisition of Huel, a British supplier of plant-based food powders and meal-replacement beverages. The review aims to assess whether the deal could reduce competition in the U.K. market.

The CMA initiated a preliminary merger inquiry on Wednesday, setting a deadline of September 11 to reach a phase 1 decision. This first stage will determine whether the transaction warrants a more detailed phase 2 investigation. The watchdog had begun gathering information and invited comments from stakeholders as early as May to better understand the potential competitive implications.

Under the terms of the acquisition announced earlier this year, Danone seeks to expand its foothold in the growing market for plant-based nutrition products by purchasing Huel, which is known for its nutritionally complete meal solutions. The CMA’s scrutiny reflects concerns that combining Danone’s existing portfolio with Huel’s offerings could diminish consumer choice or lead to higher prices.

At this stage, no decision has been made regarding whether the deal will face a more comprehensive review or be cleared. The CMA’s assessment will consider submissions from competitors, customers, and other interested parties before moving to the next phase if necessary.

Danone and Huel have not made public statements regarding the CMA’s ongoing inquiry. The outcome of the investigation could influence the broader trend of consolidation within the alternative nutrition sector in the U.K., which has seen increasing investment and acquisitions as consumer demand rises.