Arla and Express to merge

UK – Express Dairies and the UK arm of Arla Foods have launched a bid to merge in a deal which will create the UK’s second largest dairy company.

The deal is subject to approval from shareholders on 24 April and from UK competition authorities.

Speaking to Dairy Industries International, an Express spokesman said: “The feeling is that the OFT won’t intervene, although there is some speculation that it may fall into the hands of EU competition authorities. There is a positive feeling about it.” The new company, which will be called Arla Foods UK, will process around 2.4 million litres of milk per year, just short of Dairy Crest’s 2.5 million litres. It will control 37% of the UK’s liquid milk market, 25% of the butter, spreads and margarine market and a “significant proportion” of the speciality cheese market.

The new company is expected to bring annual savings of more than