Danish "Yes" to merger
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- 25 January 2000
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On Monday, MD Foods' Supervisory Board approved an agreement between Denmark's competition authorities and MD Foods, resulting in the sale of one further dairy and a tightening of the terms for the sale of dairy capacity which was agreed in connection with the merger between MD Foods and Kløver Mælk.
The agreement between the competition authorities and MD Foods means that the former will raise no objections to the planned merger between MD Foods and the Swedish Arla. The merger, therefore, will not be brought before the relevant EU competition authorities.
"We welcome the fast decision, which means that we don't have to wait six months for the case to be considered by the EU," says Group Managing Director Jens Bigum, MD Foods. "At the same time, however, we have to say that we've gone a long way to achieve this. The tightening of the competitive conditions imposed on us are taking place alongside increasing foreign competition in our domestic markets. The government and the competition authorities should realise that we are part of a larger market in which a business of our size will never have a monopoly."
Jens Bigum believes that the agreement ensures the continuation of a differentiated, Danish agricultural sector. "We have now contributed our part," he said.
On Monday afternoon, staff at Grøndal Dairy were informed that their dairy had been put on the sales list. At Gredstedbro Dairy, which is also up for sale, operations were closed down last year.
The time frame for the disposals have not been announced.
Arla Foods is an international dairy company owned by 9,700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.