Müller’s acquisition of UK-based dairy business Yew Tree Dairy is being investigated by the country’s competition regulator.

The Competition and Markets Authority (CMA) announced yesterday (27 August) that it has launched a merger inquiry to see if the deal will cause “a substantial lessening of competition”.

The deadline for this first phase decision is 22 October while the invitation for any interested party to comment on the transaction closes on 10 September.

The deal was announced in June when Müller said it would use Yew Tree’s milk powder to grow its export business and “drive supply-chain resilience”.

Established in 1904, Yew Tree Dairy, based in Skelmersdale, Lancashire, produces fresh milk and cream. However, following “significant investment in recent years”, the business now also produces milk powder.

At the time, Müller revealed plans to “significantly invest in the capacity and capabilities of the Skelmersdale milk drying site”, once the deal is completed.

The business will “enhance its milk drying capability, enabling it to become a major producer and exporter of powdered milk products made in Britain”.

In the UK, Germany-based Unternehmensgruppe Theo Müller manufactures and markets branded and private-label dairy products, alongside a designated plant-based range.

Last November, Müller decided to sell its UK milk delivery business Milk & More to local dairy group Freshways.

The CMA recently granted provisional approval for T&L Sugars’ proposed acquisition of Tereos‘ UK assets.

The transaction had been under a “Phase 2” investigation by the CMA after identifying competition concerns during its “Phase 1” investigation.  

However, in another scenario, the competition regulator dismissed another legal challenge in April from French bakery group Cérélia following a lengthy effort to acquire dough business Jus-Rol.