Merger Between Walhorn and Arla Approved by Competition Authorities
The merger between dairy co-opertives EGM Walhorn and Arla Foods has been approved by the relevant competition authorities. The merger is set to take effect on August 1st 2014.
With the approval in place Arla Foods will add new co-operative owners in Belgium, Germany and the Netherlands, where EGM Walhorn’s current co-operative owners are based.
Following the merger, Arla will have 13,500 co-operative members. For the first time, Arla will have members in the Netherlands, resulting in Arla having owners in seven different northern European countries.
EGM Walhorn is a co-operative owned by 795 dairy farmers in Belgium (426), Germany (317) and the Netherlands (52). The company has an annual turnover of Eur239 million and collects milk from its members and sells it to the dairy Walhorn AG, which EGM Walhorn jointly owns with the privately owned dairy company Lactalis. EGM Walhorn’s collaboration with the dairy will remain unchanged following the merger.
The merger is expected to strengthen Arla’s business in Central Europe and beyond. “This merger will provide new opportunities for our business not only in terms of an increased supply of raw milk, but it also creates a platform for increased export to growth markets outside the EU. We are prepared to begin the integration process and look forward to generating the greatest possible value from the new joint business,” says Tim Ørting Jørgensen, Arla’s Executive Vice President and director of the company’s operations in Central Europe.
As a co-operative, Arla Foods is owned by 13,500 milk producers (including Walhorn’s 795 dairy farmers) in seven different countries – the UK, Sweden, Denmark, Germany, Belgium, Luxembourg and now also, as a result of the merger, the Netherlands. Arla’s core markets are the UK, Sweden, Germany, Denmark, Finland and the Netherlands. In 2013, Arla’s worldwide sales of dairy products to customers and consumers totaled DKr73.6 billion (Eur9.86 billion).
