Aramark faces a regulatory setback following an order from the UK Competition and Markets Authority (CMA) requiring it to unwind its acquisition of Entier Limited. The move responds to concerns about the substantial reduction of competition in offshore catering services, essential to operations on the UK Continental Shelf (UKCS).
According to the CMA’s analysis, this union drastically reduced the options available to offshore operators, raising the risk of higher prices and lower quality of services offered.
A firm decision, with no room for compromise
Although Aramark submitted a preliminary proposal in October 2025 to mitigate the CMA’s concerns, it ultimately decided to withdraw it. The panel evaluated possible solutions, including partial divestitures, but concluded that the only effective way to restore competition is a full sale of Entier to an independent buyer approved by the CMA.
Richard Feasey, chairman of the panel, emphasized the importance of maintaining strong competition to ensure that offshore offshore workers quality services to offshore workers.
People working in offshore oil and gas fields face incredibly difficult working conditions at sea, so keeping them fed and cared for is critical; that’s why effective competition for these catering services is so important.
Richard Feasey, chairman of the independent panel investigating the merger.
The impact of the merger on the UKCS
The UKCS (United Kingdom Continental Shelf) is a key economic zone for the United Kingdom, rich in energy resources, where multiple platforms and offshore infrastructure assets operate. Demand for specialized catering services is constant and competition ensures high standards of service.
With the acquisition of Entier in January 2025, Aramark significantly increased its market share, leaving clients with limited options for future bids. Many of them already considered Aramark and Entier as indispensable participants in their procurement processes.
The CMA’s analysis determined that no other competitor has the capacity to match the combined offer of both companies in the next 2 years, consolidating a dominant position that is difficult to challenge.
What’s next for Aramark?
The CMA has given Aramark 12 weeks to formally propose commitments that will lead to the sale of Entier and, if it fails to do so, a final binding order will be issued. The requirement does not include Entier Australia Pty Ltd, as its operations do not impact the UK market.
This decision sets a precedent in the oversight of mergers in the energy and critical services sector in the United Kingdom. It also highlights the regulator’s active role in preventing mergers that could alter the competitive balance in sensitive sectors such as offshore.
Source: United Kingdom Government
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