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Walhorn Arla Merger Approved

02 July 2014

EU - The merger between EGM Walhorn and Arla Foods has been approved by the relevant competition authorities.

The merger is set to take effect on 1 August.

With the approval in place Arla prepares to welcome new cooperative owners in Belgium, Germany and the Netherlands, where EGM Walhorn’s current cooperative owners are based.

Following the merger, Arla will have 13,500 cooperative members. For the first time, Arla will have members in the Netherlands, resulting in Arla having owners in seven different northern European countries.

Arla’s Executive Vice President and director of the company’s operations in Central Europe, Tim Ørting Jørgensen, said he is pleased that the merger has been approved as it will strengthen Arla’s business in Central Europe and beyond.

”We are delighted to get the green light for this merger, and we are ready welcome our new cooperative owners and colleagues from Walhorn.

“This merger will provide new opportunities for our business not only in terms of an increased supply of raw milk, but it also creates a platform for increased export to growth markets outside the EU.

“We are prepared to begin the integration process and look forward to generating the greatest possible value from the new joint business,” Mr Ørting Jørgensen said.

EGM Walhorn is a cooperative owned by 795 dairy farmers in Belgium (426), Germany (317) and the Netherlands (52). The company has an annual turnover of €239 million and collects milk from its members and sells it to the dairy Walhorn AG, which EGM Walhorn jointly owns with the privately owned dairy company Lactalis. EGM Walhorn’s collaboration with the dairy will remain unchanged following the merger.

As a cooperative, Arla Foods is owned by 13,500 milk producers (incl. Walhorn’s 795 dairy farmers) in seven different countries: the UK, Sweden, Denmark, Germany, Belgium, Luxembourg and now also, as a result of the merger, the Netherlands. Arla’s core markets are the UK, Sweden, Germany, Denmark, Finland and the Netherlands. In 2013, Arla’s worldwide sales of dairy products to customers and consumers totaled DKK 73.6billionn.

TheCattleSite News Desk

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