OFT drops Wiseman milk probe

THE OFFICE of Fair Trading has called off its investigation into an alleged abuse of the Scottish milk supply market by Robert Wiseman Dairies - admitting it could not justify proceeding with the case.

A spokesman for the regulator said ''the file is being closed' after 15 months spent trying to determine if the group was using its dominant position to undercut rivals supplying milk to convenience stores and corner shops.

Shares in Glasgow-based Wiseman climbed nearly 6% as the group, which has spent over £700,000 in legal and professional fees on the case, said it was looking forward to 'focusing on the future'.

The OFT launched its investigation into the group in May last year after it was accused of abusing its position by Express Dairies, the owner of Wiseman's largest rival Claymore Dairies. Wiseman agreed to give voluntary assurances to the OFT on its milk prices pending the outcome of the case, guaranteeing it was not supplying milk at below-cost to customers in the Highlands.

A statement by the OFT today said: 'The OFT found that it is probable that the middle-ground market in Scotland is separate from that in England and that it was likely that Wiseman has a dominant position in the market.' It added: 'However, after an exhaustive and thorough investigation, the OFT takes the view that further investigation is unlikely to lead to a finding of abuse. In these circumstances, the OFT cannot justify proceeding with the case.'