The Dutch dairy cooperative, FrieslandCampina, is moving forward with plans to merge with its Belgian counterpart, Milcobel.
The two companies have signed a framework agreement and aim to finalize a comprehensive merger proposal by the first half of 2025. This proposal will subsequently be assessed by FrieslandCampina members and Milcobel shareholders.
Approval from anti-trust authorities is required for the merger to proceed.
In a joint announcement made on December 18, both FrieslandCampina and Milcobel stated that “this joining of forces creates a leading dairy cooperative and dairy company.”
Based on their combined annual figures for 2023—excluding Milcobel’s Ysco business, currently in the divestment process—the anticipated pro-forma revenue of the new organization is expected to exceed €14 billion ($14.69 billion). This new entity will operate across 30 countries, employ nearly 22,000 staff members globally, and process around 10 billion kilograms of milk.
The milk supply will come from almost 11,000 farms, including approximately 16,000 member farmers located throughout the Netherlands, Belgium, Germany, and France.
The merger presents substantial growth opportunities in sectors including cheese, white dairy products (milk, buttermilk, and yogurt), and various dairy ingredients.
Sybren Attema, chair of FrieslandCampina’s board, remarked, “The combination of FrieslandCampina and Milcobel is bigger than the sum of its parts. It creates a future-oriented, combined dairy cooperative that is resilient and capable of capitalizing on opportunities in the dynamic global dairy market. This strengthens our appeal to member dairy farmers, business partners, and employees. Moreover, this step supports us in realizing a leading milk price for our member dairy farmers, now and in the future.”
A FrieslandCampina spokesperson has stated, “It is too early to give a statement about that.”
Last month, FrieslandCampina, previously linked with a merger with Danish peer Arla Foods two years ago, disclosed plans to cut over 180 jobs in the Netherlands to enhance the efficiency, sustainability, and future-proofing of its domestic production.
The cooperative is also closing a cheese facility in Born, relocating production 280 kilometers north to Workum, and intends to close part of its site in Leeuwarden, which produces milk products.
In May, Milcobel appointed Peter Grugeon as its new CEO, following the departure of Nils van Dam in February due to fundamental disagreements with the board on the company’s vision.
Regarding the prospective merger, Betty Eeckhaut, chair of Milcobel’s board, stated, “The cooperative philosophy, which is deeply rooted at both Milcobel and FrieslandCampina, is the bedrock for this proposed merger. Our goal remains to create added value for our member dairy farmers. Through our regional complementarity, we will become the cooperative dairy partner of choice for current and new members, with a solid milk supply for a successful future.”
“For employees, the new organization provides exceptional opportunities to grow in an international environment. For customers, this merger means more innovation, an expanded product portfolio, and further professionalization of our services.”
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