The Competition and Markets Authority (CMA) has given the green light to the acquisition of Yew Tree Dairy by Müller, a move poised to reshape the landscape of the British dairy sector. This approval, finalised on 22 October, follows initial hesitations concerning potential impacts on market competition.
The acquisition, initially announced in June, is set to enhance production capabilities for Yew Tree Dairy, a respected West Lancashire-based producer renowned for its fresh milk and cream. This strategic move is expected to bolster Müller’s position in the industry, allowing them to harness Yew Tree Dairy’s facilities for milk powder production, which opens new avenues in the export market.
At the centre of this strategic acquisition is Müller’s ambition to ensure supply chain resilience while securing a dynamic future for the British dairy industry. The acquisition aligns with Müller’s broader objectives to exploit global dairy consumption trends and bolster its international reach. This forward-thinking strategy is supported by the strong foundations and expertise found in both companies. Rob Hutchinson, the Chief Executive of Müller Milk and Ingredients, expressed confidence in the complementary nature of the two businesses, highlighting their capabilities and customer relationships as pivotal to future success.
The CMA’s decision marks the conclusion of a thorough review process initiated due to concerns over a “substantial lessening of competition” within the UK dairy sector. The comprehensive analysis by the CMA has now resolved these concerns, providing a clear path for the merger. The detailed reasoning behind the CMA’s decision is expected to be made available shortly.
With the CMA’s approval, Müller and Yew Tree Dairy are now positioned to lead advancements in dairy production and export, setting a robust precedent for future industry mergers.
