The ARLA Foods giant dairy giant is scheduled to merge with the German collaborative DMK group, to form an entity of more than 12,000 farms in seven countries.
The couple said in a joint statement that the deal will create “the largest collaborative of dairy in Europe”, with members of Denmark, Sweden, the United Kingdom, Germany, Belgium, Luxembourg and the Netherlands.
Integration is subject to organizational approval and support for the Council of Representatives in both cooperatives in June.
Revenue in support of the formation of 19 billion euros (20.75 billion dollars) can achieve the new entity, which will bear the name ARLA and decide it in Vibi J, Denmark. ENGO Müller, CEO of DMK, will lead the ARLA executive team as EVP for post -merging integration.
The proposed deal is the latest treatment announced between two major dairy groups in Europe.
In December, Fretzland Telepina, the Dutch cooperative Plans To merge with the Belgian peers Melkobel.
Jean described Norgdard, Arla president, the integration as a “victory” for both cooperatives. He added: “The strength of the ARLA and DMK group lies in our common commitment to quality and innovation, and I see the DMK group is the ideal partner in the formation of a new and prosperous Arla, on the verge of driving in the dairy industry.”
Muller said the merger would open new markets. He said: “Through the global arrival of ARLA, we can reach consumers and customers to go beyond our current geographical scope in addition to enhancing the flexibility of our business. We will enable our supplementary strengths, both in business and mental, to continue to advance in dairy and innovation technology, while providing a strong house for farmers.”
The two cooperatives have worked together in the past, including in the ARNOCO joint project to treat whey from the production of cheese in DMK to the concentration of whey and lactose protein for international components in ARLA.
The couple believes that merger will provide flexibility through the expected decline in the comprehensive European milk gathering.
Talk to Just foodARLA confirmed the proposed merger It will not affect its presentation of the majority share in the Egyptian Arabian Industries companyKnown as Domati.
In 2024, Arla revenues amounted to 13.8 billion euros ($ 14.39 billion), an increase of 13.7 billion euros that were created a year ago.
The group produces about 13.7 billion kilograms of milk annually and holds the ARLA, LurPak, Puck and Castello brands. Cooperative owned by more than 7600 farms.
DMK employs about 6,800 employees in more than 20 locations in Germany and the Netherlands.
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