Arla Foods and MUH Merge
The merger between German Milch-Union Hocheifel (MUH) and Arla Foods has been approved by the EU competition authorities and takes effect today (October 1st 2012). With the approval in place Arla is welcoming new cooperative owners in Germany, Belgium, and Luxembourg, where MUH’s cooperative owners are based.
Arla’s executive vice president and director of the company’s operations in Germany, Tim Orting Jorgensen comments:”This merger will provide Arla with new opportunities on the German market not only in terms of an increased supply of raw milk and access to a strong product portfolio, but it also creates a platform for increased export to growth markets like China. We are prepared to begin the integration process and look forward to generating the greatest possible value from the new joint business.”
MUH is Germany’s eigth-largest dairy company, specialising in the production of long life milk and fresh liquid milk in the town of Pronsfeld, southwest of Cologne near the border of Belgium and Luxembourg. MUH employs approximately 800 people and has approximately 2,700 cooperative owners who – like Arla’s owners – are dairy farmers. In 2011 the company generated a revenue of approximately Eur680 million, of which approximately 40% came from exports.
Arla has a long history in Germany with well-known brands including Arla Buko and Arla Kærgarden, both of which are delivering rapid growth. The merger between MUH and Arla creates the third-largest dairy company in Germany, which will be called Arla Foods Deutschland.
