CMA Orders Aramark (ARMK) to Unwind Entier Acquisition, Impacting Competition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Source: seekingalpha
- Acquisition Unwinding Decision: The UK's Competition and Markets Authority (CMA) ruled that Aramark (ARMK) must unwind its acquisition of Entier due to concerns that the deal harms competition in offshore catering and facilities management services, potentially leading to higher prices or reduced quality for customers.
- Market Competition Analysis: The CMA's independent panel concluded that Aramark and Entier are two of the three major suppliers in the UK offshore catering market, and their merger would significantly reduce customer choice, with other competitors unlikely to provide strong alternatives in the next two years.
- Acquisition Background: Aramark acquired a 90% controlling stake in Scottish caterer Entier in early 2025 to expand its offshore catering presence in the UK and North Sea, but this move has raised regulatory concerns regarding market competition.
- Follow-Up Action Timeline: The CMA has 12 weeks to either accept Final Undertakings from Aramark or issue a Final Order requiring the company to sell Entier to a suitable buyer approved by the CMA to ensure market competition is maintained.
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Analyst Views on ARMK
Wall Street analysts forecast ARMK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARMK is 45.33 USD with a low forecast of 43.00 USD and a high forecast of 49.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
9 Buy
1 Hold
0 Sell
Strong Buy
Current: 38.490
Low
43.00
Averages
45.33
High
49.00
Current: 38.490
Low
43.00
Averages
45.33
High
49.00
About ARMK
Aramark is a global provider of food and facilities services to education, healthcare, business and industry and sports, leisure, and corrections clients. The Company operates through two segments: Food and Support Services United States (FSS United States) and Food and Support Services International (FSS International). The FSS United States segment consists of five sectors, which include business and industry, education, healthcare, sports, leisure and corrections, and facilities and others. Its FSS International segment provides a similar range of services as those provided to its FSS United States segment clients and operates in each of the sectors. The Company provides food and beverage services, including catering and retail services, and facilities services, including plant operations and maintenance, custodial, housekeeping, landscaping and other services. The Company's core market is the United States, which is supplemented by an additional 15-country footprint.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CMA Orders Aramark (ARMK) to Unwind Entier Acquisition, Impacting Competition
- Acquisition Unwinding Decision: The UK's Competition and Markets Authority (CMA) ruled that Aramark (ARMK) must unwind its acquisition of Entier due to concerns that the deal harms competition in offshore catering and facilities management services, potentially leading to higher prices or reduced quality for customers.
- Market Competition Analysis: The CMA's independent panel concluded that Aramark and Entier are two of the three major suppliers in the UK offshore catering market, and their merger would significantly reduce customer choice, with other competitors unlikely to provide strong alternatives in the next two years.
- Acquisition Background: Aramark acquired a 90% controlling stake in Scottish caterer Entier in early 2025 to expand its offshore catering presence in the UK and North Sea, but this move has raised regulatory concerns regarding market competition.
- Follow-Up Action Timeline: The CMA has 12 weeks to either accept Final Undertakings from Aramark or issue a Final Order requiring the company to sell Entier to a suitable buyer approved by the CMA to ensure market competition is maintained.
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Aramark Partners with UAlbany for 15-Year Dining Transformation
- Partnership Agreement: Aramark has signed a landmark 15-year partnership with the University at Albany, set to launch in January 2026, aimed at redefining the campus dining experience through innovation and inclusivity, thereby enhancing overall student well-being.
- Dining Upgrade: The new District East food hall will offer a diverse array of global cuisines and vibrant social spaces, expected to become a lively hub for students and faculty, fostering connections and enriching campus life.
- Technology-Driven Convenience: With mobile ordering, self-checkout kiosks, and data-driven menu optimization, the initiative aims to enhance service speed and accessibility, significantly improving the dining experience across campus.
- Student Engagement: The Saxbys café at the Massry School of Business will be student-operated, providing hands-on opportunities in hospitality and entrepreneurship, further promoting inclusivity and engagement within the campus community.
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