The UK’s Competition and Markets Authority (CMA) has approved Arla Foods’ acquisition of Yeo Valley’s milk, butter and cheese business.

Arla Foods originally revealed its intention to acquire Yeo Valley Group subsidiary Yeo Valley Dairies in February.

The CMA subsequently announced in May that it would review the deal in order to ensure that the acquisition does not result in a substantial lessening of competition across the UK markets.

"We want to maximise the growth in organic dairy products, and continued investment in the Yeo Valley and Arla brands will be key to this."

Arla Foods noted that CMA conducted a Phase I investigation and has cleared the deal, concluding that the transaction is now unconditional.

The company also added that Arla Foods intends to legally complete the deal and work towards increasing the brand presence of Yeo Valley organic dairy products across the UK market.

Arla Foods UK managing director Ash Amirahmadi said: “This is significant news for our business, the industry and our farmer-owners.

“We want to maximise the growth in organic dairy products, and continued investment in the Yeo Valley and Arla brands will be key to this.

“We particularly want to extend a warm welcome to the dairy farmers within the Coombe Farm Milk Pool, who are partner suppliers to Waitrose Duchy Organic.

“Our cooperative beliefs and values are very aligned and we look forward to working closely in the coming months.”

Arla Foods said that Yeo Valley’s yoghurt, ice cream, cream and desserts segments will continue as independent business units to be operated under the ownership of the Mead family.