Omira to merge with Lactalis

German dairy Omira is considering a merger with the Lactalis Group.

The long-term future of Omira’s milk producers and the further development of the Ravensburg and Neuburg sites will be secured by the package negotiated by both companies, which will include the takeover by Lactalis and a 10-year milk price guarantee. With Lactalis’ expertise in the international market, both companies are also hoping for new sales markets.

The final decision on the merger will be taken by the Omira shareholders on 22 June.

Last year presented many dairies in Germany with great challenges. After Omira saw improved prices in 2015, it could not maintain them. The main reason for this was the high level of milk powder intervention stocks, which blocked price increases in this segment.

This unsatisfactory development has prompted Omira to intensify the partner discussions anchored in the Omira 2020plus strategy. There have been discussions with a number of candidates, who want to jointly promote the 2020plus strategy and invest with Omira.

After the talks the Lactalis group has crystallized as an optimal partner for Omira, the company says.

Related content

Leave a reply

Dairy Industries International