European dairy giant set for launch as Arla-DMK deal clears

Arla Foods and DMK Group have secured final approval for a merger that will create a €20bn (£17.3bn) farmer-owned dairy cooperative representing 11,200 dairy farmers across Europe.

The merger has now received approval from all required regulatory authorities and is expected to take effect on 1 June 2026.

The combined business will operate under the Arla name, with a milk pool of 19.4 billion kg a year and 28,800 employees globally.

It will have pro forma revenue of more than €20 billion (£17.3 billion).

Until the merger takes effect, both companies will continue to operate independently.

Arla and DMK said the merger would strengthen the scale and resilience of European dairy production.

They said the move would support food security and help the sector respond to geopolitical and economic uncertainty.

The companies said the deal builds on years of partnership, shared values and complementary strengths.

They added that the larger cooperative would have greater capacity to invest in stable milk production, farmer returns and food supply.

Jan Toft Nørgaard, chair of Arla Foods, described the approval as “a landmark day” for both cooperatives.

He said it was also significant for “the next generation of dairy farmers” and European food production.

Mr Nørgaard said the merger would help secure the scale, resilience and investment capability needed to support a food sector with a reduced impact on climate and nature.

He added: “Our cooperatives have united farmers for generations and collaboration across borders has never been more important to help feed life across the planet.”

Heinz Korte, chair of DMK Group, said farmers were looking forward to joining forces.

He said the support shown by farmers in votes held in June 2025 reflected a commitment to working together across borders.

Mr Korte said the merger would create “one of the largest communities of farmers in Europe”.

He added that the combined cooperative would be able to strengthen its global reach while growing the value of its milk.

The companies said the merger would help secure stable dairy farming and production in Europe.

They said the enlarged business would be a stronger partner for retail, foodservice and ingredients customers.

The combined cooperative will offer a broader range of dairy products, greater innovation and more collaboration on branded, industry and private label products.

Arla said its brands, including Arla, would form part of the merged business.

Peder Tuborgh, chief executive of Arla Foods, said the combined cooperative would become “one of the continent’s best dairy producers for the future”.

He said the business aimed to be among the most trusted partners in safeguarding European food production.

Mr Tuborgh added that the merger would support farming practices that reduce the impact on climate and nature.

He said: “With a growing global population, dairy nutrition has much to offer, and by bringing together our milk, brands, production network and strengths, we reinforce our promise to Feed Life™.”

Ingo Müller, chief executive of DMK Group, said the merger would sharpen the companies’ technological edge and accelerate innovation.

He said it would open up new opportunities for growth and collaboration through shared brands, category expertise and the complementary strengths of DMK and Arla.

Mr Müller said the combined business would become “a pillar of strength” in helping to secure food supply for people in Europe and globally.

The integration process is expected to begin on 1 June 2026.

The merged business will be headquartered in Viby J, Denmark, with Arla chief executive Peder Tuborgh leading the new cooperative.

Jan Toft Nørgaard will serve as chair and Inger-Lise Sjöström as vice chair.

DMK Group chief executive Ingo Müller will join Arla’s executive management team as executive vice president of post-merger integration.