First Milk get green light

FIRST MILK has been told that it will be allowed to go ahead with its acquisition of a 15% stake in Robert Wiseman Dairies.

The Office of Fair Trading ruled that there were no competition concerns and will not be referring the transaction to the Competition Commission.

Members of the milk co-op voted unanimously in November to push ahead with the investment, at a cost of £28.3m.

Funding came from a 0.5p/litre capital levy on members, who will continue contributing to an individual investment account until March 2007.

A spokesman said he was delighted with the news from the OFT, which allowed First Milk to move forward with its strategy of capturing value for members up the supply chain.

John Duncan, First Milk CEO said: “We are pleased that the Office of Fair Trading have cleared our 15% share acquisition of Robert Wiseman Dairies plc.

“This decision will allow us to develop and cement our working relationship with the Wiseman business.”