Saputo pays $1.9b for Dairy Crest
Canadian dairy giant Saputo is continuing its global buying spree, stitching up a deal to buy the listed UK company Dairy Crest.
The $190 million sale inched closer last week after the Competition and Markets Authority said a major obstacle to the sale has nearly been overcome. It said proposals by Müller to help ensure the sector remains competitive post-sale -- a major roadblock to completion -- were “appropriate to remedy” its competition concerns over the sale.
The regulator now “proposes to accept” Müller’s proposals, which paves the way for the deal to go ahead.
The sale would leave the UK market dominated by Müller Wiseman, Denmark’s Arla and the First Milk farmers’ cooperative.
Dairy Crest chief executive Mark Allensays it has always believed the sale of the dairies operations is good news for the whole UK dairy sector, now suffering low returns on dairy commodities.
“It will deliver economies of scale and cost efficiencies that will underpin investment and help the UK compete more successfully in global markets.”
