However, the latest statement is the first time the two processors have both confirmed their intention is to combine. If negotiations were successful, the parties would expect to notify any merger to the CMA, they added.
A merged Medina and Freshways would create a supplier with a combined turnover of almost £380m, according to the pair’s most recent accounts on Companies House, with Freshways parent Nijjar Dairies posting sales of £213.6m in the year to 28 December 2019.
Medina Dairy posted sales of £244.3m for the 78 weeks to 27 October 2018, which when annualised stood at £162.9m. However, it made a pre-tax loss of £1.4m over the accounting period (annualised to £934,000). Nijjar Dairies, meanwhile, made a pre-tax profit of £434,000 in 2019.