Arla sells brands to meet Milko purchase conditions

The Swedish Competition Authority approved Arla’s sale of the Bollnasfil, Fjallfil and Fjallyoghurt brands, to satisfy some of the conditions laid down for accepting the merger between Arla and Milko. The Authority’s decision to approve the merger between dairy companies Arla and Milko in October 2011 was subject to certain conditions. Arla must divest five of Milko’s brands, and similarly the dairy plant at Grado. These requirements were imposed in order to maintain future competition.

Arla has now proposed selling the Bollnasfil brand to Gefleortens mejeriforening and the ‘Fjall’ brands to Norrmejerier. Both buyers are already active in the Swedish dairy sector. Plans are also underway for the sale of the Barry and Tiger brands as well as the dairy plant at Grado.