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Ben Wein
Tue, Apr 8, 2025, 5:45 AM 2 min read
International dairy elephantine Arla Foods is acceptable to merge with German dairy cooperative DMK Group, forming an entity of much than 12,000 farmers crossed 7 countries.
The brace said successful a associated connection the woody volition make "the largest dairy cooperative successful Europe", with members successful Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands.
The merger is taxable to regulatory support and the backing of the committee of representatives successful some cooperatives successful June.
It could bring a combined pro-forma gross of €19bn ($20.75bn) to the caller entity, which volition transportation the Arla sanction and beryllium headquartered successful Viby J, Denmark. DMK CEO Ingo Müller volition pb the Arla enforcement absorption squad arsenic EVP of post-merger integration.
The projected woody is the latest transaction announced betwixt 2 large dairy groups successful Europe.
In December, Dutch dairy cooperative FrieslandCampina set retired plans to merge with Belgian adjacent Milcobel.
Jan Toft Nørgaard, the seat of Arla, called the merger a "win-win" for some cooperatives. "The spot of some Arla and DMK Group lies successful our shared committedness to prime and innovation, and I spot DMK Group arsenic the cleanable spouse successful shaping a caller and strengthened Arla, poised to pb successful the dairy industry," helium added.
Müller said the merger would unfastened up caller markets. "Through Arla’s planetary scope we tin entree consumers and customers beyond our existent geographical scope arsenic good arsenic strengthening our concern resilience. Our complementary strengths, some successful concern and mindset, volition alteration america to support advancing successful dairy exertion and innovation, portion besides providing a beardown location for farmers,” helium said.
The 2 cooperatives person worked unneurotic successful the past, including connected the ArNoCo associated task to process whey from DMK's food accumulation into whey macromolecule ore and lactose for Arla's planetary ingredients business.
The brace judge the merger volition supply resilience done an anticipated diminution successful the wide European beverage pool.
Speaking to Just Food, Arla confirmed the projected merger would not interaction its connection for a bulk involvement successful Egyptian food-and-beverage institution Arabian Food Industries, known arsenic Domty.
In 2024, Arla’s revenues reached €13.8bn ($14.39bn), a emergence connected the €13.7bn generated a twelvemonth earlier.
The radical produces immoderate 13.7bn kilograms of beverage per twelvemonth and holds the brands Arla, Lurpak, Puck and Castello. The co-op is owned by its much than 7,600 farmers.
DMK employs astir 6,800 unit astatine much than 20 locations chiefly successful Germany and the Netherlands.
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