UK’s CMA Examining Lakeland Dairies, LacPatrick Dairies Merger
The UK’s Competition and Markets Authority (CMA) has announced that it is investigating the planned merger between Ireland’s Lakeland Dairies and LacPatrick Dairies.
The CMA has imposed an "initial enforcement order" on the planned merger, amid fears that the merged entities will ‘cease to be distinct’ following the tie up.
According to a statement on the CMA website, "The CMA has reasonable grounds for suspecting that it is, or maybe the case, that arrangements are in progress or in contemplation, which, if carried into effect, will result in Lakeland Dairies and LacPatrick Dairies ceasing to be distinct."
Announcing The Deal
Lakeland Dairies and LacPatrick Dairies announced details of the planned merger in July, while it was approved by shareholders at both firms in October.
The CMA’s initial enforcement order does not prevent the merger from going ahead, rather it applies a set of regulations on the merger agreement, including restrictions on transfer of ownership, ensuring the range and quality of products supplied to the UK are maintained, customer lists are maintained separately, and a number of other criteria.
The CMA will announce details of a Phase One enquiry, where interested parties can make a submission, on its website shortly.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.