Long Clawson's acquisition of Dairy Crest's Hartington Creamery has been given the go-ahead by the Competition Commission.
Following a three-month investigation, the commission concluded last week that the creamery would have been closed by Dairy Crest had Long Clawson not stepped in.
Although there was some loss of competition in allowing Long Clawson to acquire the site, it was preferable to the dairy being closed, it said.
The commission said the Hartington Creamery had been "failing".
"The business was not viable on a small scale, due to its significant overheads, but could no longer operate on a larger scale due to the recent loss of many of its largest customers," it said. Problems with quality and consistency of product also hampered the site, the commission found.
Long Clawson chief executive Martin Taylor said the closure of the creamery remained an option.
Following a three-month investigation, the commission concluded last week that the creamery would have been closed by Dairy Crest had Long Clawson not stepped in.
Although there was some loss of competition in allowing Long Clawson to acquire the site, it was preferable to the dairy being closed, it said.
The commission said the Hartington Creamery had been "failing".
"The business was not viable on a small scale, due to its significant overheads, but could no longer operate on a larger scale due to the recent loss of many of its largest customers," it said. Problems with quality and consistency of product also hampered the site, the commission found.
Long Clawson chief executive Martin Taylor said the closure of the creamery remained an option.
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