UK – The Office of Fair Trading (OFT) has announced that it is considering blocking Nestle’s acquisition of the Ski and Munch Bunch yogurt brands.

Nestle announced in February that it intends to buy the brands from UK company Northern Foods for £145 million (237.7 million).

The OFT is considering whether the deal qualifies for investigation under the merger provisions of its fair trading act. If it does, the OFT can refer the case to the Trade and Industry minister Patricia Hewitt and in turn to the Competition Commission.

If the deal is successful, Nestle will become the second largest dairy desserts manufacturer in the UK, behind Muller. Northern plans to use cash from the deal to reduce its group borrowings.

The deal is also subject to employee consultation. Northern Foods’ yogurt production plant in Cheshire is to be included in the deal.