Arla looks to milk UK, German dairy mergers

AFP/The Local
AFP/The Local - [email protected]
Arla looks to milk UK, German dairy mergers

Swedish-Danish dairy cooperative Arla announced Tuesday it was planning two large European mergers, with Germany's Milch-Union Hocheifel (MUH) and Britain's Milk Link, both cooperatives.


"Arla Foods is today announcing plans for two major mergers – with Germany's eighth largest dairy, the cooperative Milch-Union Hocheifel ... and with the UK's fourth largest dairy, the cooperative Milk Link," Arla said in a statement.

The three cooperatives are set to make a final decision on the mergers on June 26, but the deals will also need clearance from regulatory authorities, it added.

Arla, which will retain its name, said the mergers would allow it to grow from having 8,024 co-op owners in Denmark, Sweden and Germany, to having 12,300 owners in those three countries and also in Britain, Belgium and Luxembourg.

Arla, which raked in 55 billion Danish kroner ($9.4 billion) in sales in 2011, said that if the mergers go through they will "immediately increase Arla's revenue by 9.0 billion kroner per year."

The Scandinavian company, which exports products under the brands Arla, Lurpak and Castello to more than 100 countries and which employs more than 17,000 people, said that by 2015 it aimed to "be the UK's largest dairy company and (to) rank third in Germany."


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