The Competition and Markets Authority (CMA) said it is investigating the proposed merger of dairy firms Freshways and Medina.
Both companies in July have announced an agreement to merge to form Medina Freshways Ltd.
The CMA, in an initial enforcement order issued on 24 August and published yesterday, said it is considering whether to make a reference to launch a merger inquiry.
Freshways Dairy, based in Acton, and Medina Dairy, based in Windsor, have said the merger will help create a viable, long-term, fresh liquid milk business that can compete with the other large players in the dairy sector.
Medina Freshways will have a combined turnover of about £400m, employ 1,000 staff and process about 500m litres of British Red Tractor farm-assured milk.
The new company will be led by Sheazad Hussain, of Medina Dairy, and Bali Nijjar of the Freshways group, as joint managing directors.
