The Competition and Markets Authority (CMA) has initiated an investigation into Müller’s acquisition of Yew Tree Dairy, a family-owned UK dairy company, to ascertain whether this merger could significantly reduce competition for goods or services across the United Kingdom.
Founded in 1904 and based in Skelmersdale, West Lancashire, Yew Tree Dairy specialises in the production of fresh milk and cream. Recently, the company has also ventured into milk powder production following substantial investments. Müller Dairy (UK), headquartered in Shropshire, acquired Yew Tree in June, aiming to leverage its milk powder production capabilities to bolster Müller’s export business and enhance supply chain resilience.
Müller has expressed intentions to further invest in the capacity and capabilities of the Skelmersdale milk drying site, contingent upon receiving CMA approval. The CMA is currently seeking input from interested parties regarding any potential competition issues and has requested written representations to be submitted by 10th September.
Müller UK & Ireland, under the umbrella of Unternehmensgruppe Theo Müller, employs over 32,000 individuals across Europe. In the UK alone, Müller collaborates with 1,300 farmers to develop, manufacture, and market a varied range of branded and private-label dairy products, in addition to a designated plant-based range.
Rob Hutchison, CEO of Müller UK’s dairy subsidiary Müller Milk & Ingredients, commented, “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, stated, “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.”
The CMA’s inquiry into the Müller and Yew Tree Dairy merger will determine the potential impact on market competition, with the outcome likely to influence the future dynamics of the UK’s dairy industry.