Arla Foods and DMK Group Plan to Form Europe's Strongest Dairy Cooperative
Source: dairynews.today
Arla Foods and DMK Group announce their intention to merge, forming Europe's largest dairy cooperative with combined revenues of 19 billion euros.
Arla Foods and DMK Group have revealed plans to merge, aiming to establish the largest dairy cooperative in Europe. The proposed merger plans to unite over 12,000 farmers, creating a joint cooperative with a pro forma revenue of 19 billion euros.
The merger aims to enhance dairy production and innovation while ensuring competitive milk prices for farmers. This proposal, yet to receive regulatory approval, is expected to secure the future of dairy production in Europe by combining the strengths of both cooperatives. Arla will be the name of the merged entity, headquartered in Denmark, with current Arla CEO Peder Tuborgh leading the merged organization.
With a solid milk supply and financial capabilities, this merger is anticipated to safeguard dairy production, allowing for investment in technology and innovation to benefit consumers globally. Both companies have showcased synergies in prior collaborations, like the ArNoCo project. Arla’s Jan Toft Nørgaard emphasized the shared commitment to quality and innovation in his statement: "The foundation of this partnership is formed by our shared values, and I am immensely proud of this proposed merger, which is a win-win for our cooperatives." The finalization of this plan is dependent on board approvals scheduled for June 2025, with regulatory processes expected to wrap up by the end of 2025.
The merger aims to enhance dairy production and innovation while ensuring competitive milk prices for farmers. This proposal, yet to receive regulatory approval, is expected to secure the future of dairy production in Europe by combining the strengths of both cooperatives. Arla will be the name of the merged entity, headquartered in Denmark, with current Arla CEO Peder Tuborgh leading the merged organization.
With a solid milk supply and financial capabilities, this merger is anticipated to safeguard dairy production, allowing for investment in technology and innovation to benefit consumers globally. Both companies have showcased synergies in prior collaborations, like the ArNoCo project. Arla’s Jan Toft Nørgaard emphasized the shared commitment to quality and innovation in his statement: "The foundation of this partnership is formed by our shared values, and I am immensely proud of this proposed merger, which is a win-win for our cooperatives." The finalization of this plan is dependent on board approvals scheduled for June 2025, with regulatory processes expected to wrap up by the end of 2025.
