Lactalis in Omira peace offering
Lactalis is offering a proposal to resolve a conflict that the company has with Omira Oberland Milchverwertung. As part of the purchase of Omira Group’s business operations in 2017, there were differences between Lactalis and Omira Oberland Milchverwertung. For this reason, Lactalis filed a lawsuit in December 2018 against Omira Oberland Milchverwertung.
Lactalis claimed there was a breach of obligations of the purchase contract as well as an additional financial burden resulting from the imminent change of the milk conversion factor, which totalled around €23.5 million.
However, Lactalis is keen to build a long-term, collaborative relationship. Therefore OmiraOberland Milchverwertung has been offered an out-of-court settlement of the differences submitted.
Lactalis agrees to fully pay the future additional costs of adjusting the milk conversion factor. This corresponds to a total of €19.5 million. In addition Lactalis is offering to release a sum of €6 million from the €10 million deposited for notarial security purposes.
“With our concession we hope to have paved the way for a friendly settlement. Our company wishes a trusting, solid partnership with our milk suppliers even beyond the existing milk contract,” explains Morten Felthaus, managing director at Lactalis.
So far Omira Oberland Milchverwertung is rejecting the new offer from Lactalis, as it sees the Lactalis claims as unfounded.