Müller acquisition of Yew Tree Dairy cleared after investigation

The CMA launched an inquiry on 27 August 2024 over fears that the agreement, which was first announced in June, could lead to a substantial lessening of competition within the UK dairy market.

After accepting comments from interested parties, the CMA confirmed a phase 1 decision would be announced by 22 October, once it had the chance to assess the available evidence.

No further details on the rationale behind the decision have yet been released.

Now the deal has been cleared, Müller said it is expected to close for an undisclosed fee by the end of the month.

Yew Tree possesses extensive milk powder production capabilities which Müller is keen to utilise in order to grow its export business and drive supply chain resilience.

The German diary giant intends to utilise the expertise at Yew Tree to enhance its milk drying capability on a group-wide level, in the hope of becoming a “major producer and exporter of powdered milk products”.​

‘Excited to welcome new colleagues’

Commenting on the CMA announcement, CEO at Müller Milk & Ingredients Rob Hutchison said: “This acquisition will drive significant progress towards MMI’s purpose to deliver a better dairy future.​

“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.”​

Hutchison added that Müller was “excited to welcome”​ its new colleague from Yew Tree, but did provide any further information about whether the acquisition would result in job losses.

Based in Skelmersdale, Lancashire, Yew Tree has been a family-owned and operated company for its entire existence.

“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,” ​said Carl Woodcock, director at Yew Tree.

“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, benefitting our staff, farmers and customers and creating a strong and successful future for the British dairy industry.”​

In other news, food giant Nestlé has announced a series of changes to its executive board​​​, as new CEO Laurent Freixe targets quicker decision making.