Watchdog launches inquiry into major dairy merger

The Competition and Markets Authority (CMA) has launched a merger inquiry into Müller’s acquisition of the family-owned UK dairy company, Yew Tree Dairy.

It’s considering if the merger could result in a substantial lessening of competition for goods or services across the UK.

Established in 1904, Yew Tree Dairy which is based in Skelmersdale, West Lancashire, produces fresh milk and cream. Following significant investment in recent years, the business now also specialises in milk powder production.

Shropshire-based Müller Dairy (UK) purchased Yew 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 is also planning to “significantly invest in the capacity and capabilities of the Skelmersdale milk drying site” once the deal is completed, subject to CMA approval.

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.

Müller UK & Ireland is wholly owned by Unternehmensgruppe Theo Müller which employs over 32,000 people throughout Europe. In the UK, Müller develops, manufactures and markets a wide range of branded and private-label dairy products made with milk from 1,300 farmers in Britain, alongside a designated plant-based range.

On the announcement of the acquisition of Yew Tree, Rob Hutchison, CEO of Müller UK’s dairy subsidiary Müller Milk & Ingredients, said: “Yew Tree Dairy has excellent processing capabilities, a talented team with great expertise, and strong relationships with its customers and supplying farms. When combined with our well-invested and resilient network, I am very confident that these two family-owned businesses will complement each other really well.

“This acquisition will enable us to tap into global dairy consumption growth, unlock additional export opportunities and continue to drive supply chain resilience.”

Carl Woodcock, director at Yew Tree Dairy, said: “The family felt the time was right to explore new opportunities whilst retaining our farming roots.

“After meeting with the Müller family, we feel confident that this is the right decision for the business to be part of a larger organisation for the next phase of growth that will benefit our staff, farmers, and customers in the longer term.”