Dairy manufacturers turn down mass-scale fusion agreement
Big Dairy Plans Continental Merger: Awaiting European Union Approval
Ready to dominate the European dairy scene, Arla and DMK have secured farmer approval for their massive merger, aiming to establish the continent's largest dairy cooperative. Here's what's happening next.
Hear that? It's the sound of the dairy industry shaking things up. Two European giants, Arla Foods and the Milram manufacturer DMK Group, are rallying to create a joint cooperative, marking the pathway to European supremacy. The merger, which would bring together more than 12,000 farmers across multiple countries, has received a thumbs-up from the majority of farmers in separate meetings.
Both companies announced the passing of the voter decisions post-meetings. In Germany, over 200 milk farmers of DMK gathered to discuss the merger plans. The proposal was initially announced in April, promising to create a mega-cooperative that would then go by the Arla name.
approval still need's EU's thumbs-up
Before the merger can become a reality, the European Union's competition authority must give its seal of approval. At this moment, the EU's blessing is still awaited, with estimated approval possibly arriving as late as March next year.
Naturally, the plans have stirred up some controversy, mainly from farmers' associations and retailers. The Association for Agricultural Reform (AbL) warns of centralized power structures potentially harming farmers. The long-term benefits of the merger for farmers remain uncertain, according to AbL Federal Chairwoman Claudia Gerster, a dairy farmer herself from Saxony-Anhalt.
The road ahead
With the farming community voicing concerns, the regulatory process promises to be closely scrutinized. The German Association of Milk Producers (BDM) called for an immediate examination of the planned merger upon the announcement.
The merger would result in an unprecedented alliance between over 12,000 farmers. DMK farms in Germany and the Netherlands would contribute around 4,600 farmers, while approximately 7,600 farmers would come from Arla in countries like Denmark, Sweden, Britain, Germany, Belgium, Luxembourg, and the Netherlands.
The DMK Group, headquartered in Lower Saxony's Zeven, has its administration in Bremen, while Arla is based in Denmark's Viby. The soon-to-be-merged giants generate around 19 billion euros in annual sales and employ around 28,700 people combined.
As the EU examination continues, it's unclear what the merger means for German locations and employees. The current Arla CEO, Peder Tuborg, will lead the company after the iunion, with DMK CEO Ingo Müller joining the management team.
Stay tuned for more updates on the dairy sector's game-changing merger! It's history in the making, folks!
Extra Bites:- The merger between Arla Foods and DMK aims to create the largest dairy cooperative in Europe.- The merger plan was announced in April 2025, and farmers' votes were taken in separate meetings in June 2025.- The EU competition authority's approval is still pending, expected sometime in March 2026, with a potential filing in mid-June 2025.- The merger could impact locations and employees in Germany, but the specifics have yet to be determined.
The European Union's competition authority still needs to grant approval for the merger of Arla Foods and DMK Group, which aims to create the continent's largest dairy cooperative and dominate the European dairy industry. The long-term financial implications and potential impact on business operations in Germany, particularly for employees, are uncertain at this time.
