CMA launches investigation into Medina Dairy & Freshways merger


The Competition and Markets Authority (CMA) has launched an investigation into the merger of milk processors Freshways and Medina Dairy following concerns that it could lead to a “substantial lessening of competition”.

In July, the two dairy companies agreed a merger to create a £400m combined company, which will employ around 1,000 people.

READ MORE: CMA releases Green Claims Code

As a result, the body revealed it is investigating the proposed merger in September but moved to a formal phase one competition investigation this morning.

According to the companies, the merger will “create the basis for a viable, long-term, fresh liquid milk business”, as well as an outfit with the “requisite scale and agility to compete with the two large players which dominate the dairy sector in the UK”.

Previously the two companies announced that the combined business would be led by CEO of Medina Dairy, Sheazad Hussain, alongside, Freshways group managing director Bali Nijjar as joint managing directors.

The news comes as, in August last year it was revealed that major supermarkets failed to review their land agreements for “anti-competitive” clauses, nine months after authorities began investigating the issue.

“Restrictive covenants”, which have been illegal since 2010, allow former owners to control how plots are developed after being sold.

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