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UK: Regulator plans to accept Muller-Dairy Crest deal

 |  August 10, 2015

The UK Competition and Markets Authority Monday said it has opened up its investigation into the proposed deal between Muller UK & Ireland Group LLP and Dairy Crest Group PLC to third parties and said it has extended the deadline until October when it will make a final decision.

The anti-trust regulator said it has accepted undertakings from Muller in order to satisfy its competition concerns, and said it plans to accept these unless any opposition appears during the consultation period, which is now open to third parties.

Back in June, Muller offered concessions to the CMA regarding its acquisition of FTSE 250-listed Dairy Crest’s dairies business after the two companies reached a deal in November whereby Muller would pay GBP80 million to Dairy Crest for the businesses, leaving Dairy Crest focused on spreads and cheeses.

In response, the CMA said Muller was required to sell to another dairy processor an option to require Muller to process a certain volume of fresh milk each year for supply to national grocery retailers as part of those undertakings.

On Monday, the CMA said Muller is in talks with two dairy processors to seal the necessary toll processing agreement to satisfy those undertakings.

Full content: London South East

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