Merger between Walhorn and Arla approved by competition authorities

The merger between EGM Walhorn with its 795 farmer members and Arla Foods amba has been approved by the relevant competition authorities, and therefore, is set to take effect from 1st Aug’14.

With the approval in place Arla will now have 13,500 cooperative members in 7 different northern European countries, and for the first time from the Netherlands, where some of EGM Walhorn’s current cooperative owners are based.

Arla’s Executive Vice President and director of the company’s operations in Central Europe, Tim Ørting Jørgensen, pleased that the merger has been approved as it will strengthen Arla’s business in Central Europe and beyond, said: ”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.”

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 €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.

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