CMA launches investigation into Müller’s proposed acquisition of Yew Tree Dairy

UK – The Competition and Markets Authority (CMA) has initiated an investigation into Müller’s proposed acquisition of Yew Tree Dairy, a family-owned dairy business based in West Lancashire.

The deal, agreed upon in June 2024, aims to leverage Yew Tree’s milk powder production capabilities to bolster Müller’s export business and enhance supply chain resilience.

On August 27, 2024, the CMA announced its probe, citing concerns about a potential “substantial lessening of competition” in the UK dairy market.

To aid its assessment, the CMA has invited comments from interested parties, with a submission deadline set for September 10.

The CMA is expected to deliver its phase 1 decision by October 22. If concerns remain, the investigation will proceed to a more detailed phase 2.

This investigation reflects the CMA’s ongoing vigilance in maintaining fair competition in the food and drink industry.

In September 2023, the CMA upheld its decision to block the acquisition of JusRol by dough manufacturer BakeAway, despite an appeal highlighting that such scrutiny is not unprecedented.

Yew Tree Dairy, known for producing fresh milk, cream, and milk powder, is poised for significant investment under Müller’s ownership.

Müller, a major player in the UK dairy sector, works with 1,300 farmers to produce a wide range of branded and private-label dairy products.

The company has expressed plans to enhance the capacity of Yew Tree’s milk drying facility in Skelmersdale as part of its strategy to capitalize on global dairy consumption growth.

 “After meeting with the Müller family, we feel confident that this is the right decision for the business to be part of a larger organization for the next phase of growth,” Carl Woodcock of Yew Tree Dairy remarked on the proposed deal.

He emphasized that Müller’s vision aligns with Yew Tree’s values and the broader interests of the British dairy industry.

As the CMA’s investigation unfolds, the dairy industry will be watching closely to see whether the acquisition will proceed or face regulatory obstacles.

The outcome could have significant implications for competition and market dynamics within the UK’s dairy sector.

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