Robert Wiseman Dairies says it has agreed the terms of a £279.5m takeover deal by Müller UK (a wholly owned subsidiary of the German dairy giant) and is recommending the offer unanimously to shareholders.
Milk price discounters may have to raise prices above the £1 for four pints mark that has held for two years, as Robert Wiseman Dairies pushes through improved margins.
69 staff at Robert Wiseman Dairies’ Okehampton dairy and 68 staff at its Cupar distribution centre face an uncertain future as the firm initiated 30-day consultations on the future of both sites.
Helped by a global shortage of raw milk, Robert Wiseman Dairies
beat back increased input costs to raise margins and
boost turnover by 12.2 per cent for the six months ended 29
September.
Robert Wiseman Dairies has been able to juggle suppliers, pricing
and higher input costs in the first half of this year, while
increasing margins, according to a trading statement released
today.
Robert Wiseman, one of the UK's largest dairy processors, said
higher selling prices and added value milk helped it to rebuild
operating profit margins in 2006.
Rows over dairy price fixing allegations in Scotland took another
twist this week, after Arla Foods UK revealed it would sue rival
Robert Wiseman to recoup lost revenue.
UK dairy processor Robert Wiseman said sales were up two-and-a-half
per cent in its first quarter thanks to a new milk supply contract
and continued branded milk growth.
Dairy processor Robert Wiseman warned farmgate milk prices would
have to fall after profits tumbled 22 per cent in the first half
due to rising oil and energy costs.
The threat of a Competition Commission inquiry has made Robert
Wiseman pull out of a deal to buy Scottish Milk Dairies, as the
dairy consolidation trend puts competition in the spotlight.
Arla UK claimed a moral victory in its long dispute with rival
Robert Wiseman Dairies in Scotland, after the competition appeals
body over-turned an 'inadequate' investigation by the Office of
Fair Trading.
First Milk, the biggest farmer-owned milk supplier in the UK, is to
take a 15 per cent stake in Robert Wiseman Dairies, one of the
country's top milk processors, in a deal seen as bringing the two
sides of the dairy supply chain...
Robert Wiseman, the Scottish milk processor, is confident of
reaching its growth targets in the first half of 2004, despite
rising costs for fuel, energy and plastics. But while the recent
increase in volumes following new contracts...
The decisions over who will buy the Safeway retail chain and
whether the Arla/Express Dairies merger will proceed could have a
significant impact on Scottish dairy group Robert Wiseman Dairies.
