German merger called off

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04 November 2004
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The planned merger between Germany’s two largest dairy companies, Humana Milchunione and Nordmilch has been dropped.

It was announced last week that merger negotiations have now ceased as the companies regard the timing as wrong seen in the light of the current consolidation within Humana Milchunione and the extensive restructuring of Nordmilch. The companies will, however, continue their co-operation within the ice-cream and whey areas.

Although the Nordmilch/Humana merger is now cancelled, Arla Foods’ Managing Director Åke Modig is in no doubt that other major mergers within the European dairy sector are on the cards prompted by the EU’s agricultural reform, which is putting pressure on milk prices.

”We can expect more mergers within Europe and we intend to be part of that process,” says Åke Modig. “However, it’s crucial for us to find an equivalent partner, where the farm gate price is on a par with ours”.

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.

Press contact

Arla Group Press Office
Arla Group Press Office (journalists/media only) +4591310310
Åse Andersson
Åse Andersson Head of Media Press contact for Arla Foods in Denmark +45 91 310 310 +45 89 38 10 00
Carina Østergaard
Carina Østergaard Corporate Communication Manager Press contact for Arla Foods International +45 91 31 16 01 +45 89 38 10 00