The proposed sale of Dairy Crest's dairy operations to rival Mueller UK & Ireland has been temporarily stalled after the European Commission referred it to the UK Competition & Markets Authority. The company's CEO, Mark Allen, said the news was considered 'positive' as it wanted the sale to be reviewed by authorities in the UK rather than elsewhere, potentially making for a smoother process.
Mr Allen said: "It has always been our preference for the transaction to be reviewed in the UK, so we welcome this referral back to the CMA as a positive step."
The operations will fetch Dairy Crest £80m, enabling it to focus on the more lucrative spreads and cheeses sectors of the market. The milk business has been challenging for the company and its suppliers, with cut-throat competition among supermarket chains being among the key reasons for its withdrawal.