The UK's Office of Fair Trading (OFT) has announced that it has decided, on the information currently available to it, to refer the anticipated acquisition by UK dairy processor Robert Wiseman Dairies of the fresh milk business of Scottish Milk Dairies to the Competition Commission.

Robert Wiseman announced in August that it had agreed terms for the acquisition of the trade and certain assets of the fresh liquid milk business of Scottish Milk Dairies, a wholly owned subsidiary of First Milk.

The total cost of the acquisition is expected to be around £0.9m (US$1.6m). It was expected to be completed in early September.

SMD currently supplies around ten million litres of milk per annum, approximately 2% of the fresh liquid milk in Scotland, from its dairy and depot in Hamilton, near Glasgow.

'This acquisition will complement our existing operations and enhance efficiencies in Central Scotland," said Robert Wiseman, chief executive, in August.