The Arla Foods amba and Milk Link merger will go ahead after regulatory approval was given by the European Commission.

The merger will complete on 1 October, creating the UK’s largest dairy company, buying milk from about 3,000 producers.

A condition put on the approval requires the merged company to reduce its share of the UK long-life milk market by selling off Milk Link’s milk drinks business at Crediton, Devon.

This business includes Crediton dairy, which produces all of Milk Link’s long-life milk, long-life cream, extended shelf-life milk and flavoured dairy drinks and fresh bulk cream.

Arla Foods UK’s long-life milk business, based at its Settle creamery, will not be affected by the requirement from the commission.

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