CMA approved sale of DC dairies to Müller

Published 19 October 15

The Competitions and Markets Authorities (CMA) has approved the sale of Dairy Crest’s (DC) dairies operations to Müller. The sale will complete no later than 27 December 2015.

The acquisition includes Dairy Crest’s dairy facilities at Severnside, Chadwell Heath, Foston and Hanworth, together with around 70 depots. As part of the deal, Müller has agreed to toll process up to 100m litres for Medina Dairies at Severnside to ensure competition for retailer tenders.

The consideration payable by Müller remains at £80 million, but will be offset by a £15 million one-off payment back from DC on completion. The one-off payment is to help Müller meet the additional costs of getting the deal through the CMA.

Müller has also agreed to withdraw the right to pull out of the deal should there be a deterioration of more than £20 million in the profitability of DC's dairies operations.