CMA consider Müller proposal

Published 10 July 15

The Competition and Markets Authority (CMA) are considering the proposal Müller have put forward in order to combat the ‘substantial lessening of competition’ the CMA previously thought the deal with Dairy Crest could result in.

The proposal that Müller have put forward is to enter into a “toll processing” agreement with a third party. This means the third party would be able to request Müller to process and supply up to 100m litres of milk per year from the Severnside plant to major retailers across the UK. This deal would be between 5 and 8 years, depending on agreements between the third party and retailers.

The CMA has until 21 August to accept the proposal, or a modified agreement of it. Alternatively it may delay a decision to 19 October if there are special reasons for doing so. Otherwise the merger deal will be move on to phase 2 investigations – see this link for more details.