Competition watchdog probes food storage business takeover

A deal to acquire a Humber temperature-controlled food storage and logistics business is being probed by the Competition and Markets Authority. (CMA)

Grimsby-based HSH Cold Stores Ltd agreed in December last year to buy Associated Cold Stores & Transport (ACS&T) from agriculture and horticulture group Camellia. This deal was completed in January.

HSH Cold Stores Ltd stores and transports frozen and chilled fish food products and is a subsidiary of Constellation Cold Logistics, a major European cold storage network.

Last November, the business secured £5m worth of Government cash to support construction of a new £30m state-of-the-art cold store and distribution hub to support the local seafood industry.

ACS&T, which is also based in Grimsby, provides food logistics services. These include distribution, consolidation, blast freezing, temperature-controlled storage, co-packing and production support.

The CMA is investigating whether the acquisition will result in a substantial lessening of competition within any market in the UK.

Comments from interested parties can be submitted to the CMA up until a deadline of 15 May.