Arla and MD agree on merger plan

Sweden’s Arla and Denmark’s MD Foods have agreed in principle on a merger. In December, the 17,600 farmer members of both co- operatives will be asked to vote on the proposed move.
MD claims its farmers are already willing to endorse the unification, which would result in a Scandinavian dairy giant with an annual turnover estimated at 5 billion Euros. This should rank MD/Arla the biggest dairy group in Europe and the fourth biggest in the world after Nestle, Philip Morris (Kraft) and Dairy Farmers of America.

An Arla official told Dairy Industries International that no problems were expected from either country’s anti-monopoly commission.