Asda, Sainsbury's and several leading dairy suppliers will be fined a total of £116m after admitting to price-fixing charges made by the Office of Fair Trading.

As the two supermarkets, The Cheese Company and Robert Wiseman Dairies admitted liability, the companies would receive a “significantly reduced” fine, said the OFT. Safeway also admitted price-fixing - before it was bought by Morrisons.

Arla, which previously applied for leniency, will receive complete immunity from a financial penalty.

However, the OFT is to continue the case, which covers a period between 2002 and 2003, against Tesco, Morrisons and Lactalis McLelland.