Robert Wiseman Dairies, the UK’s largest fresh milk supplier, has announced it is in buyout talks with German dairy giant Muller.

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Glasgow based Wiseman Dairies supplies several supermarkets, including The Co-operative, Sainsbury’s and Tesco, from the seven dairies it operates across the UK. Having posted a 42 per cent fall in pre-tax profit for the first half of 2011 in November, the company has seen its share price rise by nearly a third today thanks to takeover speculation.

A Wiseman spokesperson has admitted the companies are in talks, but said there is no certainty of a bid.

The Muller Dairy in Market Drayton, Shropshire, is awaiting the results of a planning application for an extension which the company claims will bring 300 jobs to the area, however, Muller sparked outrage by laying off 55 staff at its Shropshire plant in December and announcing a price cut in the amount its 150 suppliers are paid for their milk.

Commenting on the price cuts the company would be inflicting on the dairy farmers who supply the plant, a Muller spokesperson said that the action was unavoidable, due to market pressures and rising input costs.

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