From Yahoo Finance: 2025-04-08 08:45:00

International dairy giant Arla Foods is set to merge with German dairy cooperative DMK Group, creating the largest dairy cooperative in Europe with over 12,000 farmers across seven countries. The deal, subject to regulatory approval, could bring a combined pro-forma revenue of €19bn to the new entity.

The new entity will be called Arla and headquartered in Denmark. DMK CEO Ingo Müller will lead the Arla executive management team. This merger is the latest in a series of transactions between major dairy groups in Europe. The pair believe the merger will provide resilience amid an anticipated decline in the European milk pool.

Arla’s revenues reached €13.8bn in 2024, with the group producing 13.7bn kilograms of milk annually. DMK, generating €5.1bn in revenue in 2024, employs around 6,800 staff. Both cooperatives have worked together in the past, including on joint ventures. The merger is seen as a win-win for both cooperatives, providing new market opportunities and business resilience.

Read more: Arla and DMK to merge into European dairy heavyweight