UK's Competition Regulator Investigating Lakeland, LacPatrick Merger
The UK’s Competition and Markets Authority (CMA) has announced that it is investigating the planned merger between Ireland’s Lakeland Dairies and LacPatrick Dairies.
The CMA made an initial enforcement order on the merger as it fears that, if carried into effect, the two will ‘cease to be distinct’.
‘The CMA has reasonable grounds for suspecting that it is, or maybe the case, that arrangements are in progress or in contemplation, which, if carried into effect, will result in Lakeland Dairies and LacPatrick Dairies ceasing to be distinct,’ the statement read.
LacPatrick Dairies announced before the summer that it was interested in pursuing strategic options which may involve partnerships with other players.
At the beginning of October, it was announced that it and Lakeland Dairies reached an agreement to merge following unanimous approval from both co-operative societies.
It was reported some weeks later that the two held respective Special General Meetings in order to vote for the decision of merging both companies.
The ballot was organised independently by the Irish Co-operative Organisation Society, resulting in 97.24% of Lakeland Dairies’ shareholders and 95.99% of LacPatrick’s shareholders voting in favour of the deal.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.