The United Kingdom’s competition regulator has opened an investigation into Danone’s £1 billion acquisition of Huel, the French multinational confirmed on Wednesday. The deal, announced in March, involves Danone’s purchase of the British company known primarily for its meal-replacement shakes and nutritional products.

The Competition and Markets Authority (CMA) is examining whether the transaction could reduce competition in the UK market for nutritional and meal-replacement products. The investigation aims to determine if the merger could lead to higher prices, reduced choice, or diminished innovation for consumers.

Danone, a global leader in food and beverages, has been expanding its portfolio in the health and nutrition segment through acquisitions. Huel’s product range includes powdered and ready-to-drink meal replacements targeted at consumers seeking convenient, nutritionally balanced options.

The CMA’s review process typically involves a detailed assessment of market dynamics and the potential impact of a merger on consumers and competitors. At this stage, no timetable has been announced for the completion of the investigation.

Danone has stated that the acquisition is intended to strengthen its position in the fast-growing category of plant-based nutrition products. Meanwhile, Huel will continue to operate as an independent brand within Danone’s larger portfolio.

Both companies have emphasized that the deal is subject to regulatory approval, with the CMA’s inquiry a standard step in assessing the competitive effects of major mergers in the UK market. The outcome will determine whether the acquisition can proceed without conditions or whether further remedies may be required.