Arla in giant fusion: will form the milk king of Europe
Collaboration turns into merger
Arla Foods has announced that the group will merge with the German dairy company DMK Group, thus creating Europe’s largest cooperative dairy group. The upcoming milk monster will be headquartered in Viby J, where Arla is already at home and will be owned by a total of 12,000 farmers.
Together, the two companies will be able to handle 19 billion euros in annual revenue – corresponding to a staggering DKK 142 billion – and processing almost 19 billion kilos of milk a year. So it is not just a splash of milk in the coffee, but the whole milk cartel that is collected under one roof.
Arla and DMK have already been on the flirt for a long time. The two companies run together Arnoco, which makes whey protein and lactose out of the by -products of cheese production – a slightly less romantic but effective business:
« Our strong market positions and product portfolios complement each other really well, and our strong partnership has shown in recent years that DMK Group is an ideal partner for Arla, » Arla’s top manager, Peder Tuborgh, said in the press release according to Extra Bladet.
However, the merger must first pass both the companies’ representative boards and not least the competition authorities. The internal approvals are expected in June, but the authorities are expected to only give green light at the end of 2025
