The UK Competition and Markets Authority (CMA) has moved to the next stage of approving the proposed merger between Lakeland Dairies and LacPatrick Co-op.

All interested parties have been invited to submit their views on the impact the potential merger could have on competition. Submissions will be accepted by the CMA from 16 January until the 30 January.

After that period the CMA will investigate the proposed merger further, with an expectation that the merger will enter the stage two phase by 13 March 2019.

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Enforcement order

On the 23 November last year, the CMA issued an enforcement order which meant that both processors had to operate as separate businesses until a merger had been approved.

It is understood that the enforcement order had to be placed after LacPatrick experienced cashflow difficulties and Lakeland moved to inject cash into the business.

Given the cross-border nature of the merger, both the UK's CMA and the Irish Competition and Consumer Protection Commission will have to approve the merger.

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