Dairy Crest/Müller Deal Sent For Phase 2 Investigation
The UK Competition and Markets Authority (CMA) is referring the proposed sale of Dairy Crest’s Dairies operations to Muller UK & Ireland Group for a phase 2 investigation. The CMA has found that the proposed acquisition gives rise to a realistic prospect of a substantial lessening of competition in the supply of fresh milk to major grocery retailers with national scope (national multiples) in certain regions in Great Britain.
On 6 November 2014 Dairy Crest announced that it had agreed to sell the assets of its Dairies operations to Muller UK & Ireland Group. The sale has already received the approval of Dairy Crest shareholders.
It remains conditional on the approval of the CMA. The phase 2 investigation is likely to take a minimum of 24 weeks.
Mark Allen, chief executive of Dairy Crest, comments: “We always anticipated that the sale would be referred to phase 2. We remain convinced that this is a great deal for our customers and farmers which will help create a more sustainable UK dairy sector at a time when it faces significant challenges. We remain confident of receiving approval at the end of phase 2.”
