Arla Foods has announced plans to merge with two foreign cooperative dairies
to make it Britain’s largest dairy producer and Germany’s third largest.
The two dairies concerned are the German dairy Milch-Union Hocheifel, which is
Germany’s eighth largest and Britain’s Milk Link, which is the United
Kingdom’s fourth largest.
“The Boards of Arla Foods amba and Milk Link have announced the proposed
merger of the two dairy co-operatives. The proposal will result in the full
merger of Milk Link, the UK’s leading dairy farmer co-operative, and Arla
Foods amba, one of the largest and most successful European dairy
co-operatives,” Milk Link says on its website.
“It will create the largest player in the UK dairy market, which will process
over three billion litres of milk per annum and have a combined turnover in
excess of £2 billion,” it adds.
The German dairy Milch-Union Hocheifel – or MUH - is also a cooperative, with
some 2,600 members in Germany, Luxemburg and Belgium. Its headquarters are
in Hocheifel region of Rhineland-Palatinate.
“If the members accept these mergers, it will cement Arla Foods’ position as
one of Europe’s soundest dairy companies,” says Arla Foods CEO Peder Tuborgh.
“Both Milk Link and Milch-Union Hocheifel are strong, well-run dairy
businesses. Their product portfolio and production lants will strengthen our
businesses in Germany and Great Britain,” he adds.
The final decision on the merger will be taken on June 26 when member
representatives of the three cooperatives will vote on the merger.
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