 The OFT feared the deal would give Heinz too much sauce |
The takeover of the firm which makes HP sauce by US food giant Heinz has been provisionally cleared by the UK's competition authorities. The Office of Fair Trading (OFT) referred the �470m ($855m) acquisition by Heinz of HP Foods to the Competition Commission (CC) late last year.
It feared higher prices for brown sauce and tomato ketchup.
But the CC says it has provisionally concluded that the deal will not result in competition concerns.
UK-based HP Foods, which also makes sauces under the Lea & Perrins, Daddies and Amoy names, was sold by French group Danone in June. It was previously owned by Hanson.
The takeover would make Heinz the leading seller of sauces in the UK.
Heinz employs more than 5,000 staff at five sites across the UK, while HP Foods employs about 450 workers in the UK.
"The CC has provisionally concluded that the acquisition may not be expected to result in a substantial lessening of competition," the commission said.
The CC is required to publish its final report by 11 April.
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