The £1bn merger between Milk Link and First Milk has collapsed because the parties failed to agree on a valuation for the businesses.
But following a due diligence process that has been carried out since last October, the two companies confirmed in a joint statement that they were unable to agree terms that they could recommend to their farmer members.
“Both boards believe strong farmer-owned dairy businesses are vital to the long-term future of the UK dairy industry. As such, both will continue with their plans to grow and develop their respective businesses,” the statement said.
The merger would have created a new business with a turnover in excess of £1bn and control of 25% of Britain’s raw milk supply. It would have held a dominant position in the own-label cheese market.
See this week's The Grocer for more details.
But following a due diligence process that has been carried out since last October, the two companies confirmed in a joint statement that they were unable to agree terms that they could recommend to their farmer members.
“Both boards believe strong farmer-owned dairy businesses are vital to the long-term future of the UK dairy industry. As such, both will continue with their plans to grow and develop their respective businesses,” the statement said.
The merger would have created a new business with a turnover in excess of £1bn and control of 25% of Britain’s raw milk supply. It would have held a dominant position in the own-label cheese market.
See this week's The Grocer for more details.
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