Arla to divest Milk Link long life division for EU approval

ArIa Foods amba and Milk Link have received regulatory approval from the European Commission to merge. The approval of the merger has been given, subject to Arla implementing a remedy to address the Commission’s concerns relating to a perceived reduction of competition in the UK long life milk market.

Arla has committed to divest Milk Link’s milk drinks business at Crediton, UK on a viable and separate, stand alone basis. This business includes Crediton dairy, which produces all of Milk Link’s long life milk, long life cream, extended shelf life milk and flavoured dairy drinks and fresh bulk cream.

The milk drinks business will be sold to a purchaser on terms approved by the EU. As such, from now the existing milk drinks business will be ring fenced from the rest of the merged business. As part of its commitment to the Commission, Arla has undertaken to preserve the economic viability, marketability and competitiveness of the business. This includes making resources available for the development of the business, in line with existing business plans, and the retention of a dedicated senior level management team to lead the business.

Arla Foods UK’s long life milk business, based at its Settle creamery, will not be affected by the remedy and will retain its  market position in long life milk.