The Competition and Markets Authority has approved a partnership between Arla Foods UK and Yeo Valley.
The UK's largest dairy co-operative Arla Foods announced earlier this year it will acquire Yeo Valley Dairies in a bid to increase "greater choice" in organic to consumers.
Following Phase 1 of the Competition and Markets Authority (CMA) investigation the transaction is now unconditional.
Currently in the UK, only 4% of milk sold in the UK fresh milk market is organic, which compares with far greater shares of organic in the milk market in Germany (10%), Sweden (16%) and Denmark (29%).
Arla Foods believes the partnership will maximise UK growth in organic dairy products.
Commenting on the announcement, Ash Amirahmadi, managing director of Arla Foods UK said it is good news for the industry and farmers.
"We want to maximise the growth in organic dairy products and continued investment in the Yeo Valley and Arla brands will be key to this," Mr Amirahamadi said.
"We particularly want to extend a warm welcome to the dairy farmers within the Coombe Farm Milk Pool who are partner suppliers to Waitrose Duchy Organic. Our cooperative beliefs and values are very aligned and we look forward to working closely in the coming months.”
The Yeo Valley yogurt, ice cream, cream and desserts business will continue to be run independently and remain under the ownership of the Mead family.
