Arla Foods UK’s acquisition of Yeo Area Dairies has been approved by the UK’s Rivalry and Markets Authority (CMA), from a phase one investigation.
Arla concluded a deal with Yeo Valley Crew to acquire the business in January, and the deal will give Arla your exclusive rights to use the particular Yeo Valley brand in the UK sell for milk, butter, spreads and mozzarella dairy product products.
However, Yeo Valley Group is going to retain the rights to its fat free yogurt, ice cream, cream and sweets business, which will be remain under the ownership of the Mead family.
The CMA presented an inquiry into the purchase in May 2018, stating that the deal could create “a substantial diminishing of competition” in the dairy sector.
However, the CMA concluded yesterday until this would not be the case, and has now given approval the deal.
Ash Amirahmadi, managing director of Arla Food products UK, said: “This is significant media for our business, the industry along with our farmer-owners.
“We want to maximise the development in organic dairy products along with continued investment in the Yeo Pit and Arla brands will be step to this.
“We particularly prefer to extend a warm welcome to any dairy farmers within the Coombe Farm Milk Pool who are companion suppliers to Waitrose Duchy Organic.
“Some of our cooperative beliefs and beliefs are very aligned and we expect working closely in the forthcoming months.”