Merger between Walhorn and Arla approved by competition authorities

The merger between EGM Walhorn and Arla Foods has been approved by the relevant competition authorities. The merger is set to take effect on August 1st 2014.

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 Arla consumer Germany and Netherlands, Tim Ørting Jørgensen, 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 to 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," says Tim Ørting Jørgensen.

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 EUR 239m 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 totalled DKK 73.6bn.

Arla Foods is a global dairy company and co-operative owned by 12,600 dairy farmers circa 2,800 of whom are British.

Dating back to 1881, Arla’s purpose is to secure the highest value for its farmers’ milk, while creating opportunities for their growth. With production facilities in 11 countries and sales offices in a further 30, Arla is the world’s sixth largest dairy company and largest supplier of organic dairy products. Arla has a total of more than 18,000 colleagues and its products are sold under the well-known brands Arla®, Lurpak® and Castello® in more than 100 countries.

Arla Foods UK is the largest dairy company in the country and is home to leading dairy brands Anchor, Cravendale, and Lactofree. It processes 3.5 billion litres of milk a year and has a turnover of £2.2 billion. As well as being number one in fresh liquid milk, butter, spreads and cream, Arla is the UK’s largest cheese manufacturer. It has also built the world’s largest fresh milk facility located at Aylesbury and has plans for it to be the first zero carbon site of its kind. The UK business has a team of approximately 4,000 colleagues located at its dairies, distribution centres and head office.