The Commission's report examines the acquisition by Napier Brown Foods PLC of James Budgett Sugars Ltd, the two largest non-producing distributors of sugar in the UK. Issues discussed include the EU sugar regime and the UK market; market definition; assessment of the competitive effects of the merger, including supply to industrial users, market entry, prices and co-ordinated effects. Whilst the report notes that the acquisition reduces the choice of supplier available to users of industrial sugar in Britain and concerns are noted about the structure of the UK sugar market and the need for reform of the EU sugar regime, the report judges that the merger is not expected to lead to a substantial lessening of competition (SLC).