Milk price war spurs merger rumours

The two milk firms want to stand side by side

Speculation is rife that two of the leading dairies in the UK are about to merge after a reported meeting between the bosses of Express Dairies and Robert Wiseman Dairies, Scotland's largest.

If merger talks were to proceed, it could lead to a highly controversial outcome.

Robert Wiseman Dairies is currently under investigation by the anti-monopoly commission after charges of price fixing among milk producers in Scotland.

Last year the Competition Commission said that the size of Wiseman dairies was "against the public interest".

Meeting

The chairmen of the two companies, Lord Haskins and Alan Wiseman, held discussions last week, according to the Sunday Telegraph.

Their reported talks came as a milk price war is heating up in the UK's supermarkets.

Each of the companies are worth about £100m.

The two dairies' similar worth could make an all share merger possible. the Sunday Telegraph predicted.

Merger wave

Consolidation is well underway among UK dairies as overcapacity is troubling the milk industry

Last year, the Competition Commission allowed Dairy Crest to merge with Unigate's dairy business.

It is not clear if a deal between Express and Robert Wiseman would be approved, though the Sunday Telegraph insisted that the competition authorities would accept a deal.