UK-based scampi processor and supplier Whitby Seafoods is scrapping plans to acquire Kilhorne Bay Seafoods following a probe by the UK's Competition and Markets Authority (CMA) that found the merger could result in higher prices and lower quality products.

The group said late Thursday it is not proceeding with its plan after the CMA said on Oct. 4 that it intended to refer the proposed deal for an in-depth second phase investigation as part of its merger review process.

Whitby Seafoods is the largest UK supplier of breaded scampi to the foodservice sector, holding a market share of close to 90 percent.