Arla Foods set to reel in UK subsidiary

UK - Dairy firm Arla Foods Amba has entered into talks with its British subsidiary to buy out the remaining 49 per cent of the company it does not already own.
calendar icon 25 October 2006
clock icon 1 minute read
Arla Foods UK and Arla Foods amba have jointly announced they are in discussions which may lead to a cash offer for the 49 per cent share capital not currently owned by Arla Foods amba.
"We are now in talks with our British subsidiary about a possible bid for the remainder of the shares. We will make further announcements in due course," said Peder Tuborgh, chief executive of Arla Foods amba.

Arla Foods Amba currently owns a 51 per cent majority share in the British company and is seeking to obtain greater control of its supply chain.

This will allow the company to make better investments as it expands within the market, Astrid Neilson, spokesperson for Arla amba, told DairyReporter sister site FoodandDrinkEurope.com.

Arla UK was warned by its Scandinavian parent over poor performances earlier this year, which saw it make a £0.9m loss for the six months ended 31 March.

Source: dairyreporter.com
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