Dairy Crest completes sale
Dairy Crest has finalised the sale of its dairies operations to Germanys Muller.
The £80 million agreement was finalised on Boxing Day. The deal, which includes all of its UK dairies and 3,000 milk floats, was completed after a lengthy competition review by UK regulators.
Bavaria’s Muller will now operate four dairies in Severnside near Bristol, Foston in Derbyshire, Hanworth in West London and Chadwell Heath in East London.
The deal also means that the German giant, most well known for its range of yoghurts, will also be in charge of delivering pints of milk across most of the country.
The Competition and Markets Authority cleared the Dairy Crest dairies deal in October after Muller agreed to process some 100 million litres of fresh milk a year for a smaller rival in a move to address competition concerns.
Dairy Crest’s decision to withdraw from UK dairies comes at a time when its chief executive, Mark Allen, is aiming to push into the lucrative global baby milk formula market.
Dairy Crest’s dairies business has contributed over £143 million in losses over the past four years and Allen has said that the plunging milk prices has meant that milk production will be better off in the hands of privately owned companies rather than a listed company.
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