UK – The Competition Commission has sent Arla Foods and Express Dairies a set of suggested remedies that might be implemented if the merger of the companies goes ahead.

The Commission announced that the hypothetical problems might include the reduction in competition due to there being fewer major liquid milk suppliers, and the adverse effect on fresh processed milk because of its impact on farm-gate prices, wholesale prices and quality.

It suggested a number of remedies to these possible problems, such as the disposal of a certain number of dairies to other buyers that are approved by the Office of Fair Trading, in order to maintain competitiveness.

The Commission also suggested that if such problems as lessening of competition in the supply to middle ground customers arose, there would have to be a clause allowing any suitable milk suppliers to be given access to the parties’ milk distribution network.