Müller acquisition of Yew Tree Dairy under investigation

The deal was agreed to in June 2024, with Müller intending to use Yew Tree’s production capabilities for milk powder to grow its export business and drive supply chain resilience.

However, on 27 August a probe was launched into the deal by the CMA in order to investigate whether it would lead to the “substantial lessening of competition”​ in the UK dairy market.

To assist with its assessment, the CMA has invited comments on the transaction from any interested party. Written comments must be submitted by the 10 September deadline.

The CMA has said that it will reach a phase 1 decision by 22 October. Should the CMA still have concerns about the proposed acquisition, the investigation will move into phase 2.

Such moves are not uncommon in the food and drink industry and moves have been blocked in the past. For example, in September 2023 the CMA upheld its decision to block the acquisition of Jus-Rol by dough manufacturer BakeAway following an appeal.​​

'Exciting vision for the future of British dairy'

Based in West Lancashire, Yew Tree is a family-owned fresh business that produces fresh milk and cream as well as milk powder. Meanwhile, Müller's UK business develops, manufactures and markets a wide range of branded and private label dairy products made with milk from 1,300 farmers.

During the deal’s initial announcement, Müller laid out plans to significantly invest in the capacity and capabilities of Yew Tree’s milk drying site in Skelmersdale.

Speaking at the time, Müller Milk & Ingredients CEO Rob Hutchison said: “Yew Tree Dairy has excellent processing capabilities, a talented team with great expertise, and strong relationships with its customers and supplying farms. When combined with our well-invested and resilient network, I am very confident that these two family-owned businesses will complement each other really well.​

“This acquisition will enable us to tap into global dairy consumption growth, unlock additional export opportunities and continue to drive supply chain resilience.”​

Carl Woodcock from Yew Tree added: “We have known Rob and the team from Müller for many years. After meeting with the Müller family, we feel confident that this is the right decision for the business to be part of a larger organisation for the next phase of growth that will benefit our staff, farmers, and customers in the longer term.​

“The key for us was to find a buyer that not only shared our values but had an exciting vision for the future of the great British dairy industry. Following a competitive process, Müller was our clear preference, and we leave our business in really good hands.”​

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