The upcoming merger will unite over 12,000 farmers and operate under the esteemed Arla name. Its headquarters will be established in Viby J, Denmark, with Jan Toft Nørgaard, chair of Arla Foods, taking the helm as chair of the merged entity.
Peder Tuborgh, the chief executive of Arla Foods, will assume the role of CEO. In addition, DMK CEO Ingo Müller will join the Arla executive management team as the executive vice president responsible for post-merger integration.
Tuborgh highlighted the importance of DMK, identifying it as Germany’s largest dairy cooperative and an appealing partner that aligns with Arla’s core values.
“Our strong market positions and product portfolios complement each other very well and our strong partnership in recent years has proven that DMK Group is an ideal partner for Arla,” he stated.
Safeguarding European Dairy
“Our joint market presence in Europe and globally will enable us to safeguard our production of healthy dairy products, ensuring stable food production in Europe, as well as bringing even more nutritious products to the world and our customers.”
This announcement builds upon a fruitful history of collaboration between the two organizations, notably the joint venture project ArNoCo, which processes whey from DMK’s cheese production into premium whey protein concentrate and lactose for Arla’s global ingredient business.
Nørgaard remarked, “The foundation of this partnership is formed by our shared values, and I am immensely proud of this proposed merger, which is a win-win for our cooperatives.”
“The strength of both Arla and DMK Group lies in our shared commitment to quality and innovation, and I see DMK Group as the perfect partner in shaping a new and strengthened Arla, poised to lead in the dairy industry.”
Detailed Discussions
In the coming months, the detailed merger proposal will be discussed with cooperative members and relevant employee representatives, including Works Councils.
On June 17/18, representatives from Arla and DMK Group boards will vote on the merger agreement, with expectations for the deal to finalize before the end of 2025, pending regulatory approval.
“Arla has established itself as a key player in the dairy industry, and by partnering up we will have a strong and attractive branded and private label product portfolio for all our customers,” Müller concluded.
“Through Arla’s global reach, we can access consumers and customers beyond our current geographical boundaries, while also enhancing our business resilience. Our complementary strengths, in both business and mindset, will enable us to keep advancing in dairy technology and innovation, while also providing a strong home for farmers.”
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