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The Competition and Markets Authority (CMA) has initiated a merger inquiry into Müller Dairy (UK) Limited's anticipated acquisition of Yew Tree Dairy Holdings Limited, raising concerns about potential impacts on competition within the UK dairy sector.

The inquiry was officially launched on 27 August 2024, with the CMA tasked to assess whether

the merger could lead to a "substantial lessening of competition" in any relevant markets.

The deadline for the CMA's Phase 1 decision is set for 22 October 2024, while the window for interested parties to submit comments on the transaction will close on September 10, 2024.

Müller announced the acquisition in June, stating its intention to leverage Yew Tree’s milk powder production to enhance its export capabilities and improve supply-chain resilience.

Established in 1904, Yew Tree Dairy, located in Skelmersdale, Lancashire, has evolved from producing fresh milk and cream to also manufacturing milk powder, following significant investments in its facilities.

The acquisition is positioned as a strategic move for Müller, which plans to invest further in the Skelmersdale site to boost its milk drying capacity, aiming to establish itself as a major producer and exporter of powdered milk products made in Britain.

The deal reflects Müller’s broader strategy to expand its product offerings and strengthen its market position amid increasing competition in the dairy sector.

This inquiry comes on the heels of other notable developments in the UK food and beverage landscape. Recently, the CMA granted provisional approval for Tate & Lyle Sugars’ acquisition of Tereos' UK assets after addressing competition concerns that emerged during its initial investigation phase.

As the CMA evaluates Müller’s proposed acquisition, industry stakeholders will be closely monitoring the potential implications for market dynamics, particularly in light of the ongoing consolidation within the UK dairy sector.

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