The proposed acquisition of Dairy Crest's dairies operations by the Muller UK & Ireland Group has been referred back to the UK Competition and Market Authority (CMA) by the European Commission for review.

Dairy Crest shareholders have already approved the proposed £80 million sale of its loss-making milk business, which was announced last November, so that it could focus on its profitable processed cheese and spreads businesses.

The company has been losing customers to supermarket chains, which offer cheaper milk than its door-to-door delivery service.

The deal comprises the fresh liquid milk, flavoured milk including the FRijj brand, bulk and potted cream, bulk butter and milk powder businesses of Dairy Crest. It includes Dairy Crest's dairy facilities at Severnside, Chadwell Heath, Foston and Hanworth together with around 70 depots.

Ronald Kers, chief executive of Muller Group, said: "The acquisition is on track and progressing. Bringing together Muller Wiseman Dairies and the dairy operations of Dairy Crest will allow the merged businesses to achieve economies of scale, enhance our ability to compete and ensure that customers continue to receive a quality product at a low price, whilst continuing to pay farmers fairly."

Market round-up

Messrs Craig Wilson Ltd sold 78 store heifers in Newton Stewart on Friday to a top of 247.2p per kg and an average of 218.9p, while 103 store bullocks peaked at 273.2p and levelled at 231.1p.

Harrison & Hetherington Ltd sold 27 prime heifers in Carlisle yesterday to a top of 213.5p and an average of 177.5p (-12.1p on the week), while 24 prime bullocks peaked at 220.5p and levelled at 198.7p (-2.7p). Seventeen prime, beef-bred bulls sold to 232.5p and averaged 195p (+4.3p), while 50 prime, dairy-bred bulls peaked at 175.5p and levelled at 155.2p (-4.2p).

In the rough ring 69 beef cows averaged 132.5p (+5.5p) and 169 dairy cows levelled at 102.7p (+0.9p). Nine bulls averaged 130.7p (+8p).

The firm also sold 2623 prime hoggs to a top of £117.80 per head and 312.5p per kg to average 190.2p (-5.2p).

A small show of 35 cast sheep saw ewes sell to £134 for Texels and £88 for Hill Cheviots.

John Swan Ltd sold 55 prime heifers in St Boswells yesterday to a top of 249p and an average of 211.5p (-3p), while 30 prime bullocks peaked at 238p and levelled at 210p (-7.7p).

In the rough ring 35 beef-type cows averaged 138.2p (+5p) and 4 clean OTM cattle levelled at 163p (+17.1p).

The firm also sold 2551 prime hoggs to a top of £118 and 236p to average £87.53 and 193p (-7p).

The 291 cast sheep forward saw heavy ewes sell to £140 for Texels and average £93.36 (+£3.35), while light ewes peaked at £93 for Cheviots and levelled at £48.06 (-£7.71).

Lawrie & Symington Ltd sold 15 prime heifers in Lanark yesterday to a top of 251p and an average of 237.1p (+4.1p), while 15 prime, beef-bred bullocks peaked at 227p and levelled at 208.4p (+4.3p). Fifteen prime, B&W bullocks sold to 165p and averaged 141.2p (+0.4p).

In the rough ring 24 beef cows averaged 132p (-1.1p) and 28 dairy cows levelled at 106.1p (+1.3p).

The firm also sold 3467 prime hoggs to a top of £116 and 242.1p to average 194.7p (-3.5p).

The 262 cast sheep forward saw ewes sell to £159.50 for a Texel and £65.01 for Blackfaces to average £83.51 overall (+£4.87).

Messrs Craig Wilson Ltd sold 2684 prime hoggs at Ayr yesterday to a top of £100 and 222.7p to average 188.4p (-3.2p).

There were also 360 cast sheep forward when ewes sold to £142 for Texels and £87.50 for Blackfaces to average £76.26 overall (-£4.59).