On 14 January 2009, the Competition Commission (CC) cleared the acquisition by Long Clawson Dairy Limited (LCD) of Millway Stilton (Millway). Prior to the merger, Millway was owned by Dairy Crest Group plc. The CC’s investigation disclosed that the merged entity would have over 50% of the UK market for stilton cheese. However, the CC took into account the fact that Millway had been losing money for a number of years and was unlikely to have survived. The CC in assessing the market weighed up the competition implications of LCD acquiring the Millway business against the “counterfactual” situation of the merger not occurring, which was likely to result in Millway exiting the market. The CC also took into account that Millway only retained a small number of customers, and the absence of long-term contracts with suppliers meant customers could easily switch between competitors. It accepted the parties’ “failing firm defence” arguments and allowed the transaction to proceed.