Campina merger forms largest dairy co-operative
8 December 2004 , AMSTERDAM — Dutch dairy company Campina announced on Wednesday it would merge with Danish-Swedish firm Arla Foods to create the world's largest farmer-owned dairy corporation with an annual turnover of EUR 10 billion.
8 December 2004
AMSTERDAM — Dutch dairy company Campina announced on Wednesday it would merge with Danish-Swedish firm Arla Foods to create the world's largest farmer-owned dairy corporation with an annual turnover of EUR 10 billion.
The new company will be called Campina Arla, employing 28,000 workers. Some 21,000 dairy farms will retain ownership of the new co-operative and will be required to vote on the proposal in the spring of 2005.
Campina Arla will have two headquarters, one of which will be situated in Copenhagen in Denmark. A second main office will be based in Zaltbommel in the Netherlands, Campina said in its press release.
The present chief executive of Campina, Dutchman Tiny Sanders, 48, will be appointed CEO of the new company. Arla Foods boss, Swede Ake Modig, 59, will be appointed vice CEO.
Sanders said due to the wide dispersal of the company, the new firm will not gain a dominant position and he thus does not expect the European Commission will oppose the merger. He hopes to gain approval from competition authorities before 1 July next year.
Arla Foods has an annual turnover of EUR 6.5 billion, significantly more than its Dutch rival, which has an annual turnover of EUR 3.7 billion. The merged company expects significant savings, amounting to EUR 150 million annually.
Arla focuses on milk, yogurt and desserts and is primarily active in Scandinavia and the UK. Campina focuses on the same products, but is mainly active in the Benelux region, Germany, Greece and Russia. Both companies are also involved in cheese and butter production.
The commercial activities of the new company will be divided into four groups, namely Consumer Products Nordic, Consumer Products Europe, Cheese & Butter and Ingredients.
[Copyright Expatica News 2004]
Subject: Dutch news