Decision Nº M/04/012 from Competition and Consumer Protection Commission, 2004-03-23

• Jurisdiction: Ireland
• Parties: Glanbia,Milk Link
• Date: 23 March 2004
• Decision Number: M/04/012
• Decision Date: 23 March 2004
• Court: Competition and Consumer Protection Commission

1

Determination No. M/04/012 of the Competition Authority, dated 23rd March

2004, under Section 21 of the Competition Act, 2002

Notification No. M/04/012 – Proposal by Glanbia plc and Milk Link Investments

Limited to create a joint venture known as Cheese Company Holdings Limited

Introduction

1. On 23rd February 2004 the Competition Authority, in accordance with Section 18

(1) of the Competition Act, 2002 (“the Act”) was notified, on a mandatory basis,

of a proposed joint venture to be known as Cheese Company Limited between

Glanbia plc and Milk Link Limited. In fact the structure of the transaction is as

follows: Milk Link Investments Limited (Milk Link Investments) and Waterford

Foods International Limited (“Waterford”), a wholly owned subsidiary of

Glanbia plc, would create a joint venture company for the purpose of acquiring

from Waterford the entire issued share capital of Glanbia Foods Limited (Glanbia

Foods). The joint venture company, to be known as the Cheese Company

Limited (CCH) would be owned 75 per cent by Milk Link Investments and 25

per cent by Glanbia. CCH will be the second largest cheese producer in the UK,

with strong positions in cheddar, Stilton and British territorial cheeses, supplying

the retail, food service and ingredient sectors. It will operate four cheese

processing facilities and a consumer packing facility in Great Britain. Milk Link

Limited, part of the Milk Link Group will enter into a supply agreement with

Glanbia Foods to supply milk to the joint venture.

The Undertakings Involved

2. Glanbia is an international dairy, consumer foods and nutritional products

company based primarily in Ireland, the UK and the US and quoted on the Dublin

and London stock exchanges. Glanbia is a major international cheese

manufacturer.

3. Milk Link Investments is part of the Milk Link Group, which is one of the largest

dairy businesses in the UK. Milk Link Limited is owned by 2,400 farmers across

the South of England and its processing business includes long life milk, long life

and fresh cream, soft cheese and yoghurt.

4. Glanbia Foods is a company incorporated in England and Wales and is Britain’s

second largest producer of cheddar, Stilton and British territorial cheeses.

Analysis

5. The target company Glanbia Foods is based in the UK and does not supply

customers in Ireland. The transaction involves a structural change whereby the

target company will become part of a joint venture which will be 75% owned by

a group whose activities are primarily outside the jurisdiction. The creation of

CCH will allow the Milk Link Group to move into the cheese production