Commission backs Millway takeover
The takeover of the Millway business of Dairy Crest Group by Long Clawson Dairy has been approved by the Competition Commission (CC) after concerns were raised over the loss of competition.
Long Clawson Dairy, which now owns two of the three biggest Stilton production centres, bought Millway after it had been loss-making for years.
The CC said that if the merger had not taken place Dairy Crest would have been forced to close Millway and "its remaining customers would have been split between Long Clawson and the other Stilton suppliers".
It concluded that as a result of Millway’s financial position the loss of competition caused by the merger is likely to be small, so the CC believes there will not be a negative impact on the supply of blue Stilton cheese in the UK.
Diana Guy, chairman of the inquiry group, said: "Dairy Crest had made significant attempts over a number of years to resolve Millway’s production problems. We were satisfied that, such are the scale of its difficulties, any further attempts to restructure the business to allow it to survive independently would have failed."
Copyright © Press Association 2008
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