Arla Foods and Milk Link Announce Proposed Merger
The merger will bring together two successful and growth orientated farmer-owned dairy processing businesses with complementary positions in key markets, brands and customer bases.
22 May 2012 --- The Boards of Arla Foods amba and Milk Link have announced the proposed merger of the two dairy co-operatives. The proposal will result in the full merger of Milk Link, the UK’s leading dairy farmer co-operative, and Arla Foods amba, one of the largest and most successful European dairy co-operatives. It fulfils both co-operatives’ strategic priorities and will support their overall goal of providing their dairy farmer owners with a sustainable future.
The merger will bring together two successful and growth orientated farmer-owned dairy processing businesses with complementary positions in key markets, brands and customer bases. It will create the largest player in the UK dairy market, which will process over three billion litres of milk per annum and have a combined turnover in excess of £2 billion.
The merger will mean that Milk Link Members will become part of one of Europe’s leading dairy co-operatives. It is expected to provide the basis for improved returns for Milk Link Members and enable them to achieve, after a transitional period, the same level of return as enjoyed by existing Arla owners.
The proposal will be subject to approval by Milk Link Members, the Arla Foods amba Board of Representatives and relevant regulatory authorities.
