‘Landmark’ moment as deal between Arla and DMK Group given green light
Dairy giant Arla has announced that it has been given the green light for its merger with German firm DMK Group, in a move that will bring together 11,200 dairy farmers across seven countries.
Arla and DMK announced that they had received all necessary regulatory approvals for the deal, adding that the merger was now expected to take place on June 1.
The new merged company will carry the Arla name, with headquarters in Denmark.
The pair said the merger would create “Europe’s leading farmer-owned dairy cooperative and a European champion to drive forward dairy farming and food production.”
Speaking on the deal, Jan Toft Nørgaard, chair of Arla Foods, said: “This is a landmark day for our cooperatives, for the next generation of dairy farmers and for European food production.
“We can move forward together to secure the necessary scale, long-term economic resilience and investment capability required to contribute to shaping a food sector with a reduced impact on climate and nature.
“Our cooperatives have united farmers for generations and collaboration across borders has never been more important to help feed life across the planet.”
Arla is the fifth biggest dairy company in the world, as well as the largest producer of dairy products in Scandinavia and the United Kingdom.
The firm’s UK headquarters are based in Leeds.
Once merged, Arla and DMK are expected to produce 19.4 billion kg of milk annually, with pro forma revenue of over €20bn.
Mr Nørgaard will serve as chair of the firm, with DMK Group`s CEO, Ingo Müller, joining Arla’s executive management team as executive vice president of post‑merger integration.
Mr Müller said: “The merger will sharpen our technological edge, accelerate innovation, and open new opportunities for growth and collaboration, powered by our shared brands, deep category expertise, and the complementary strengths of DMK and Arla.
“With a collaborative culture and a strengthened position in our markets, we will be even more a pillar of strength in ensuring the secure supply of food for people in Europe and globally.“
Peder Tuborgh, CEO of Arla Foods, added: “Together, we will become one of the continent’s best dairy producers for the future.
“We aim to be among the most trusted partners in safeguarding European food production and in supporting farming practices that reduce our impact on climate and nature.
“With a growing global population, dairy nutrition has much to offer, and by bringing together our milk, brands, production network and strengths, we reinforce our promise to Feed Life.”