THE NETHERLANDS/SCANDINAVIA – Two of Europe’s largest dairies, Arla Foods and Campina, have dropped plans to merge.

The announcement comes after weeks of stalling from the two co-operatives. Danish competition authorities, which are thought to have had major questions about the way in which Campina’s finances are structured, had been slowing the deal.

If successful it would have created the world’s largest farmer owned dairy co-operative and one of the largest dairy companies.

According to Campina, its members were very positive about the merger, and were looking forward to the synergies and stable milk price that it would bring.

Architect of the deal, Arla Foods chief executive