Arla Foods and the Belgian dairy cooperative EGM Walhorn have reached an agreement which will see the two outfits merge, following approval from the respective boards.
The deal will see Arla increases its total members to 13,500, including 795 in the Netherlands where the company will establish a presence for the first time. Representation in the Netherlands will increase to seven the number of countries where the dairy cooperative is active in northern Europe.
As part of the merger Arla will gain access to raw milk in Germany and Belgium for its plants in Pronsfeld (Germany) and Nijkerk (Holland).
“We are delighted to welcome the new dairy farmers to our group of owners,” said Ake Hantoft, chairman of Arla Foods.
“Arla is a bigger business than Walhorn, but we have exactly the same desire to be part of a cooperative that enables us to grow and develop our farms,” he continued. “Some of Walhorn’s owners are already neighbours of Arla farmers, so in every way it feels like a natural step to merge with our colleagues at Walhorn.”
Approval for the merger from regulators is expected by the summer.
Source: Info Retail / FoodBev / Food Manufacture