The Competition and Markets Authority (CMA) is referring Müller’s proposed acquisition of Dairy Crest’s processing, trading and distribution activities relating to liquid milk, packaged cream, flavoured milk and bulk commodity ingredients, to a Phase II assessment.
The proposed acquisition includes Dairy Crest’s dairy facilities at Severnside, Chadwell Heath, Foston and Hanworth together with around 70 depots.
During the Phase II assessment, which will take approximately six months to complete, the CMA will continue to investigate plans for the proposed acquisition before making a final decision.
Ronald Kers, Chief Executive of Müller Group expected this development and looks forward to working with the CMA to achieve a positive outcome.
“The rationale for this transaction is perhaps even stronger now given the mounting challenges facing the UK fresh milk sector and we remain convinced of the need to increase our competitiveness, ensuring that customers continue to receive a quality product at a low price, whilst continuing to pay farmers fairly,” he commented.
“We can achieve this by bringing Müller Wiseman Dairies and Dairy Crest’s dairy operation together leading to better efficiencies. This will give us the means to unlock higher levels of investment, category insight and product development, which is badly needed in the fresh milk aisle.”
