European Commission approves Arla Foods amba and Milk Link merger

Arla Foods amba and Milk Link are pleased to be able to confirm that regulatory approval has been granted by the European Commission to merge. The Commission’s approval means that the merger will now complete on 1 October, enabling the formation of the UK’s number one dairy company.

The approval of the merger has been given subject to Arla implementing a remedy to address the Commission’s concerns relating to a perceived reduction of competition in the UK long life milk market.

As such, in order to restore effective competition, Arla has committed to divest Milk Link’s milk drinks business at Crediton on a viable and separate, standalone basis. This business includes Crediton dairy, which produces all of Milk Link's long life milk, long life cream, extended shelf life milk and flavoured dairy drinks and fresh bulk cream.

The milk drinks business will be sold to a purchaser on terms approved by the Commission. As such, from now the existing milk drinks business will be ring fenced from the rest of the merged business and as part of its commitment to the Commission, Arla has undertaken to preserve the economic viability, marketability and competitiveness of the business. This includes making resources available for the development of the business, in line with our existing business plans, and the retention of a dedicated senior level management team to lead the business.

Arla Foods UK’s long life milk business, based at its Settle creamery, will not be affected by the remedy and will retain its established market position in long life milk.

Arla Foods UK plc is home to some of the UK’s leading dairy brands including Cravendale, Lurpak and Anchor. Processing approximately two billion litres of milk a year Arla continues to be one of the UK’s leading dairy companies and a supplier of fresh liquid milk and cream to the top seven retailers.

Over 2,500 daily deliveries are made directly to stores nationwide and Arla brands can be found across the dairy category. As well as the leader of the butter, spreads and margarine sector, and a major supplier of other added value products including flavoured milk and cheese, Arla continues to build working relationships with Arla Foods Milk Partnership, a unique group of dairy farmers, which supplies around 90 per cent of Arla's total milk requirements.

Behind this leading business is a team of circa 2,800 people across the UK located at our dairies, distribution centres and head office.