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Source: Müller UK & Ireland

The deal is set to expand Müller’s milk powder capabilities in both the UK and export markets

The Competition & Markets Authority has rubber-stamped Müller UK & Ireland’s acquisition of Yew Tree Dairy – first announced in June.

The deal for the Lancashire-based processor was framed as a big move by Müller into ingredients, with the dairy giant being able to capitalise on Yew Tree’s recent investment in its milk powder production capabilities.

However, the CMA announced a probe into the deal in August, due to concerns it would lead to the “substantial lessening of competition” in the UK dairy market.

The competition watchdog today said its case was closed, with a full text behind its decision due to be published shortly. The deal is expected to be completed by the end of October, with Yew Tree and its pool of around 400 farmers transferring across to the dairy giant.

“This acquisition will drive significant progress towards MMI’s purpose to deliver a better dairy future,” said Müller Milk & Ingredients CEO Rob Hutchison.

“The British dairy industry is world-renowned for its approach to sustainability, quality and welfare and so not only does this acquisition underline our ambition to grow our business, but also a commitment to ensuring our customers, farmers and consumers will all feel the benefit,” he added.

“We’re excited to welcome our new colleagues from Yew Tree Dairy to Müller, and I look forward to meeting them all in the coming weeks and opening a new chapter for both businesses and the wider supply chain.”

Müller is hoping to use Yew Tree’s capabilities to grow its export business and drive supply chain resilience. 

“Once completed, Müller intends to utilise internal expertise from across Unternehmensgruppe Theo Müller to enhance its milk drying capability, enabling it to become a major producer and exporter of powdered milk products made in Britain, with milk from British dairy farms,” the supplier said.

Carl Woodcock, director of Yew Tree Dairy, said: “As a family-owned and operated company, we’re very proud of the progress we’ve made and the organisation we have built over the last few decades. As it’s now time for us to move on to new opportunities, we know we leave the business in good hands with Rob and the rest of the team from Müller.

“It was important for us to hand over the reins to people who’d look after the business with the same care and consideration as we have over the years, and we’re confident that the values and goals we’ve seen from the Müller family are similar to our own.

“Joining Müller will help Yew Tree Dairy go from strength to strength, benefiting our staff, farmers and customers and creating a strong and successful future for the British dairy industry.”