The Competition and Markets Authority (CMA) has initiated an investigation into the acquisition of Yew Tree Dairy by Müller Dairy (UK). The merger’s potential to substantially lessen competition for goods or services throughout the United Kingdom is under scrutiny.
Established in 1904 and based in Skelmersdale, West Lancashire, Yew Tree Dairy specialises in the production of fresh milk, cream, and, following significant investments, milk powder. The acquisition, completed in June, aims to leverage Yew Tree Dairy’s capabilities to enhance Müller’s export business, drive supply chain resilience, and secure a positive future for the British dairy industry.
Müller intends to significantly invest in the capacity and capabilities of the Skelmersdale milk drying site, contingent upon CMA approval. This investment is seen as a strategic move to tap into global dairy consumption growth and unlock additional export opportunities. Rob Hutchison, CEO of Müller Milk & Ingredients, stated, ‘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.’
The CMA has invited written representations from interested parties to address any competition concerns regarding the merger. These comments must be submitted by September 10.
Carl Woodcock, director at Yew Tree Dairy, expressed confidence in the decision, stating, ‘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.’
Müller Dairy (UK) is based in Shropshire and is wholly owned by Unternehmensgruppe Theo Müller, which employs over 32,000 people across Europe. In the UK, the company develops, manufactures, and markets a wide range of branded and private-label dairy products, employing milk from 1,300 British farmers. The merger is expected to enhance Müller’s supply chain resilience and provide a positive future for the British dairy industry.
The CMA’s investigation will determine whether the merger between Müller Dairy and Yew Tree Dairy will adversely impact competition within the UK’s dairy sector. The outcome of this inquiry will have significant implications for the industry’s future and competitive landscape.