Arla-Walhorn dairy merger wins approval

Competition authorities have approved the merger between Arla Foods and European dairy co-op EGM Walhorn.

On 1 August, Walhorn’s 795 dairy farmers from Belgium, Germany and the Netherlands will join Arla, taking its membership to 13,500.

Members from both co-ops voted overwhelming for the move in mid-May, after plans were first announced in March.

See also: Arla slashes standard milk price again

Arla’s director operations for central Europe Tim Ørting Jørgensen said the merger would create a platform for boosting exports to markets beyond Europe.

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

After the merger Arla will have members in seven different countries: UK, Sweden, Denmark, Germany, Belgium, Luxembourg and, for the first time, the Netherlands.

EGM Walhorn has a €239m (£191m) turnover and sells its members’ milk to Walhorn AG, which it jointly owns with dairy processor Lactalis.