Two of the UK’s leading dairy processors have confirmed that they are in talks to merge.
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First Milk and Milk Link, both farmer-owned co-operatives, said today (4 October) that they are in “advanced discussions” over a possible merger.
The companies said a merger would “create an organisation that will deliver enhanced and sustainable returns for its members”.
Due diligence has begun; any merger would need approval from farmers on both sides and the UK’s competition watchdog, the Office of Fair Trading.
First Milk and Milk Link generate combined sales of around GBP1bn (US$2bn) a year and are owned by 4,250 farmers in the UK.
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By GlobalDataFirst Milk has a 15% stake in Robert Wiseman Dairies and a 50% stake in Promo-Vita, a pre-biotic joint venture with Fayrefield Foods International.
Milk Link has a 50% stake in Staplemead Dairy Products, a joint venture with Arla Foods, manufacturing retail cream, flavoured milks, and custards.
