CMA Launches Investigation into Müller’s Acquisition of Yew Tree Dairy
Source: DairyNews.today
The Competition and Markets Authority (CMA) has initiated an investigation into the proposed acquisition of Yew Tree Dairy by Müller, a deal that was originally agreed upon in June 2024.
Müller plans to leverage Yew Tree’s milk powder production capabilities to bolster its export business and enhance supply chain resilience. However, the CMA is scrutinizing the acquisition to determine if it could significantly reduce competition within the UK dairy market.
The investigation, announced on August 27, marks the beginning of a thorough examination by the CMA to assess potential competitive impacts. The CMA has opened the floor for comments from interested parties, with a submission deadline set for September 10. This input will contribute to the CMA’s phase 1 decision, which is expected by October 22. If concerns persist, the investigation could advance to a more detailed phase 2 review.
Such regulatory interventions are not uncommon in the food and beverage sector. For instance, in September 2023, the CMA upheld its decision to block BakeAway’s acquisition of Jus-Rol, reflecting the authority’s vigilance in maintaining market competition.
Yew Tree Dairy, a family-owned business based in West Lancashire, is known for producing fresh milk, cream, and milk powder. Müller’s UK division, on the other hand, is a major player in the dairy industry, developing and marketing a diverse range of branded and private label dairy products sourced from 1,300 farmers.
When the deal was first announced, Müller expressed its intent to invest significantly in Yew Tree’s milk drying facility in Skelmersdale, aligning with the company’s broader strategy to capitalize on global dairy consumption trends. Rob Hutchison, CEO of Müller Milk & Ingredients, praised Yew Tree’s processing capabilities and the strong relationships it has cultivated with customers and suppliers. He noted that combining these strengths with Müller’s established network would enhance the company's ability to tap into new export opportunities and further secure its supply chain.
Carl Woodcock of Yew Tree Dairy echoed these sentiments, emphasizing that Müller was chosen not only for its shared values but also for its vision for the future of the British dairy industry. He expressed confidence that the acquisition would be beneficial for Yew Tree’s staff, farmers, and customers as the business transitions into a new phase of growth under Müller’s leadership.
The investigation, announced on August 27, marks the beginning of a thorough examination by the CMA to assess potential competitive impacts. The CMA has opened the floor for comments from interested parties, with a submission deadline set for September 10. This input will contribute to the CMA’s phase 1 decision, which is expected by October 22. If concerns persist, the investigation could advance to a more detailed phase 2 review.
Such regulatory interventions are not uncommon in the food and beverage sector. For instance, in September 2023, the CMA upheld its decision to block BakeAway’s acquisition of Jus-Rol, reflecting the authority’s vigilance in maintaining market competition.
Yew Tree Dairy, a family-owned business based in West Lancashire, is known for producing fresh milk, cream, and milk powder. Müller’s UK division, on the other hand, is a major player in the dairy industry, developing and marketing a diverse range of branded and private label dairy products sourced from 1,300 farmers.
When the deal was first announced, Müller expressed its intent to invest significantly in Yew Tree’s milk drying facility in Skelmersdale, aligning with the company’s broader strategy to capitalize on global dairy consumption trends. Rob Hutchison, CEO of Müller Milk & Ingredients, praised Yew Tree’s processing capabilities and the strong relationships it has cultivated with customers and suppliers. He noted that combining these strengths with Müller’s established network would enhance the company's ability to tap into new export opportunities and further secure its supply chain.
Carl Woodcock of Yew Tree Dairy echoed these sentiments, emphasizing that Müller was chosen not only for its shared values but also for its vision for the future of the British dairy industry. He expressed confidence that the acquisition would be beneficial for Yew Tree’s staff, farmers, and customers as the business transitions into a new phase of growth under Müller’s leadership.
23.09.2024
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