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Dairy Crest Closes Sale of Operations to Muller UK and Ireland.

M2 EQUITYBITES-December 31, 2015-Dairy Crest Closes Sale of Operations to Muller UK and Ireland

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31 December 2015 - UK-based yogurt and dairy products producer Muller UK and Ireland Group LLP has closed a deal to acquire the dairy operations of UK-based Dairy Crest Group plc, the companies said.

On 6 November 2014 Dairy Crest announced that it had agreed to sell the assets of its Dairies operations to Muller UK and Ireland Group LLP for GBP 80m (USD 125.84m).

The sale has already received the approval of Dairy Crest shareholders.

On 12 June 2015 the Competition and Markets Authority that it would refer the sale for a phase 2 investigation unless Muller offered acceptable undertakings to address the CMA's competition concerns.

Muller said it has offered undertakings to address the CMA's concerns.

The CMA decided that there are reasonable grounds for believing that the undertakings or a modified version of them might be acceptable and has until 21 August 2015 to decide whether to accept the undertakings.

Should the CMA accept the undertakings, completion of the sale will move forward and be before the end of 2015 at the latest.

On 19 October, CMA announced that it had accepted modified undertakings provided by Muller and approved the sale of Dairy Crest's Dairies operations.

The consideration payable by Muller remains at GBP 80m subject to previously agreed upward or downward adjustments.

Muller has withdrawn its right not to complete the purchase should there be a deterioration of more than GBP 20m from the agreed level of profitability of Dairy Crest's Dairies operations.

Dairy Crest has agreed to make a one-off payment of GBP 15m to Muller on completion to help meet the additional cost of the modified undertakings.

The sale will complete on 26 December 2015. Dairy Crest will now finalise its consultation with employees.

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Date:Dec 31, 2015
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