Robert Wiseman agrees to Muller's £279m bid

Scottish milk producer Robert Wiseman Dairies has agreed to be taken over for about £279.5m by German dairy firm Müller Group, which is looking to increase its scale of operations in Europe.

The recommended cash offer of 390 pence per share is at a 60 percent premium to Robert Wiseman shares' close on Thursday, a day prior to the start of the offer.

Robert Wiseman, which started off selling milk from a family farm in East Kilbride in the 1940s, and now provides 30 per cent of Britain's milk, said the deal complements its positions in the yoghurt, potted desserts and fresh milk markets.

Müller, which is owned by Theo Müller, expects to fund the deal through its existing cash resources and the proceeds of a 250 million euro (£206.8m) letter of credit with Deutsche Bank AG.

The company is well-known for its "Müller Corner," "Müller Light" and "Müller Rice" brands in the UK.

With shoppers' disposable incomes squeezed by rising prices, muted wages growth and government austerity measures, UK retailers are struggling to drive productivity and deliver growth.

In November, Robert Wiseman had reported a fall in its full-year profits on input cost pressures and tough consumer environment.