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2003-05-22 11:27
British competition authorities to review merger
The UK’s Office of Fair Trading has officially requested the European Commission to review the merger between Express Dairies and Arla Foods’ UK subsidiary Arla Foods plc. The OFT believes that the merger raises possible competition concerns for the UK’s milk industry. It is expected that the EU Commission will comply with the Office of Fair Trading’s request. Market analysts have told the UK’s Daily Telegraph that a British review does not necessarily mean the merger would cause competition problems, but that it added an element of uncertainty. Express shares continue to be steady at around 32½p per share. Express Dairies’ CEO Neil Davidson said he did not believe the merger would reduce competition in a way that would force increases in milk prices on consumers. “I don’t want to second-guess the regulators, but we supply milk to very powerful supermarkets and have very vigorous competitors in the market.”
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