EUROPE – Denmark’s second largest dairy firm Hellevad Omegns Andelsmejeri confirmed on Monday it is to accept a takeover proposal from Danish and Swedish co-operative Arla Foods.

Arla will take control of Hellevad, which produces 72 million litres of milk per year, from 1 October. The Hellevad dairy is expected to close by the end of 2005.

Also this week, Arla announced that it has taken a stake in Swedish cheese packing and producing firm Kron Ost. The company has an annual turnover of 26.6 million euro and operates out of three sites in Sweden.