Competition comments invited on Freshways-Medina merger

The merger of milk processors Freshways Dairy and Medina Dairy is being investigated by the Competition & Markets Authority (CMA) to establish if it could result in a substantial lessening of competition in the milk industry.

The two companies, both based in the south east of England, agreed a merger in July 2021 to create a £400m company processing 500m litres of milk annually.

The CMA this week launched a formal phase one competition investigation, inviting industry participants to comment on whether they thought the deal would reduce competition.

See also: Medina and Freshways confirm dairy merger plans

The invitation to comment runs until 16 February, and 30 March is the deadline for the CMA to announce its decision on whether to refer the merger for a second phase of investigation.

When the merger plan was announced, Freshways Dairy and Medina Dairy said the move would help create a viable, long-term, fresh liquid milk business that could compete with the other large players in the UK’s dairy sector.

As suppliers to hotels, pubs, restaurants, coffee shops and other food-service customers, both companies were badly hit by the first pandemic lockdown. In some cases this had serious repercussions for farmer suppliers, including big milk price cuts, delayed payments and the dumping of milk.

Comments on the merger can be sent to Davide.Canzano@cma.gov.uk or Iqra.KhanomUddin@cma.gov.uk. Comments can also be sent by post to Davide Canzano (principal case officer, mergers), Competition and Markets Authority, The Cabot, 25 Cabot Square, London, E14 4QZ.