The Competition and Markets Authority (CMA) has provided its approval for Müller’s acquisition of Yew Tree Dairy, a family-run enterprise known for its fresh milk and cream production.
- This strategic move was first introduced in June and aims to enhance Müller’s production capabilities and secure a promising future for the UK dairy sector.
- Concerns were initially raised about potential market competition reduction, but these were finally set aside with the CMA’s clearance on October 22.
- Müller aims to leverage Yew Tree Dairy’s expertise to expand its milk powder production and boost export opportunities.
- The acquisition aligns with Müller’s strategy to reinforce supply chain resilience and tap into the growing global dairy consumption.
The Competition and Markets Authority (CMA) has officially cleared the acquisition of Yew Tree Dairy by Müller, a significant family-owned name in the dairy industry. First announced in June, this acquisition seeks to bolster the production capabilities of Yew Tree Dairy, which is located in West Lancashire. The dairy is renowned for its fresh milk and cream, and this strategic move is viewed as a mechanism to strengthen Müller’s market position.
Initially, the acquisition was subject to CMA approval due to concerns regarding the potential for a ‘substantial lessening of competition’ within the United Kingdom’s dairy sector. However, after thorough evaluation, the CMA has set aside these concerns, officially clearing the deal on October 22. The full text of CMA’s decision is expected to be published soon, providing detailed insight into their assessment.
The acquisition is viewed not only as a means to enhance domestic production but also as a strategy to leverage Yew Tree Dairy’s capabilities in milk powder production to expand Müller’s export business. Müller aims to capitalize on global dairy consumption trends, ensuring a robust supply chain and securing a stable future for the British dairy industry.
Rob Hutchinson, Chief Executive of Müller Milk and Ingredients, expressed confidence in this acquisition, stating, ‘Yew Tree Dairy has excellent processing capabilities, a talented team with great expertise, and strong relationships with its customers and supplying farms.’ He emphasized the complementary nature of the two businesses, which are expected to work synergistically.
Müller’s acquisition of Yew Tree Dairy represents a forward-thinking approach to the evolving challenges and opportunities within the dairy sector, allowing the company to continue growing its footprint both domestically and internationally.
The approval by CMA marks a pivotal step forward for Müller in fortifying its strategic position within the global dairy industry.
