Muller's £80m dairy deal moves a step closer

The Competition and Markets Authority has announced it has agreed in principal a number of plans by Muller that would avoid the need for a lengthy second investigation into the deal.

The Market Drayton-based dairy giant has agreed to process a nominated volume of milk for a nominated buyer in the South West and Wales.

That would allow the nominated company to compete for milk tenders in the Midlands, the South West, Wales, and the South, and prevents Muller from holding an unfair share of the milk market.

The agreement triggers the start of a process which includes a 15-day public consultation, with a final decision on the deal to be announced after 40 working days.

It means that the possible Phase II assessment of the deal is avoided, cutting the length of the investigation from around six months to about eight weeks.

Ronald Kers, chief executive of Müller Group, said: "We strongly believe that this transaction will unlock real benefits for customers, consumers and farmers.

"We are pleased that the CMA has responded promptly to our proposals which aim to fully address the concerns which they expressed and look forward to a positive outcome."

The deal includes Dairy Crest's dairy facilities at Severnside, Chadwell Heath, Foston and Hanworth together with around 70 depots, and would give Muller control over about a quarter of milk produced in the UK.