Arla Foods Sells Stake in Belgian Dairy Company
Arla Foods is disposing of its stake in Walhorn AG in Belgium, a joint venture with Lactalis, to the privately-owned French dairy company. Since the merger between Arla and Eupener Genossenschaftsmolkerei Walhorn (EGM Walhorn) in August 2014, Arla became the legal successor of the 49% ownership of the joint venture company Walhorn AG – with Lactalis owning 51% of the shares.
The existing milk delivery agreement between both parties will continue with all rights and obligations until the end of June 2016. After expiry of the agreement Arla Foods and Lactalis will make another agreement in which Arla Foods takes the obligation to deliver 100 million kilogramm milk per year to Walhorn AG.
Walhorn AG operates a dairy site in the East Belgian village of Walhorn near Eupen, producing primarily milk powder, various liquid milk productsand cream.
The decision by Arla to sell to Lactalis its share of the Walhorn AG joint venture, will not change the future of the 800 members of the co-operative EGM Walhorn becoming co-operative owners in Arla Foods.
