OM and Berglandmilch Move Towards Merger in Austria

Obersteirische Molkerei (OM) is moving towards a merger with Berglandmilch, the Upper Austrian dairy company, according to Kronen Zeitung. The proposed transaction concerns OM, a cooperative based in Knittelfeld, and Berglandmilch, whose headquarters are in Wels.

About 1,200 farmers in Styria who supply OM were informed that Berglandmilch planned to take over the cooperative’s dairy business. Berglandmilch was described in the report as the market leader in the Austrian dairy sector. The farmers were notified after the proposed combination had advanced through OM’s internal decision-making process.

OM’s supervisory board and executive board unanimously supported the takeover at the end of August. A majority of the cooperative’s members subsequently voted in favour of the merger at a general meeting. Those votes established support within OM for the transaction, but further approvals are still required before it can be completed.

Under the proposed structure, OM will continue to exist while being incorporated into Berglandmilch. The agreement includes a guarantee for the Spielberg and Knittelfeld locations. Both sites produce hard cheese, and the location commitment covers their continued presence within the combined operation.

Berglandmilch has also guaranteed milk collection through its own operation. The provision applies to the milk supplied by the farmers connected with OM and is part of the arrangements accompanying the planned integration.

The next step is a vote by Berglandmilch’s governing bodies in Upper Austria at a general meeting. If those bodies approve the merger, the transaction will then require clearance from Austria’s Federal Competition Authority, Kronen Zeitung reported.