Merger inquiry over Müller acquisition

The Competition and Markets Authority is considering if the merger with Yew Tree Dairy could result in a substantial lessening of competition for goods or services across the UK.

Yew Tree in Skelmersdale, West Lancashire, was established in 1904. It produces fresh milk and cream and, following significant investment in recent years, also specialises in milk powder production.

Market Drayton-based Müller boughtYew Tree in June, with plans to use its milk power production capabilities to grow Müller’s export business, drive supply chain resilience and “secure a positive future for the British dairy industry”.

Müller plans to significantly invest in the capacity and capabilities of the Skelmersdale milk drying site once the deal is completed.

The CMA has invited comments from interested parties to help with its inquiry. Written representations about any competition issues must be provided by September 10.

In the UK, Müller develops, manufactures and markets a wide range of branded and private-label dairy products with milk from 1,300 farmers.