(April 8): Denmark’s Arla Foods and Germany’s DMK Group plan to merge into one cooperative, bringing together more than 12,000 farmers to create a European dairy giant.

The joint entity will carry the Arla name and has a combined annual revenue of €19 billion (RM93.05 billion), the companies said in a statement on Tuesday. The headquarters will be in Viby, Denmark, with current Arla chief executive officer Peder Tuborgh retaining that role in the new company.

Arla and DMK Group are among Europe’s biggest dairy cooperatives. The merger will help secure a strong milk price for owners, provide a more diversified product portfolio and allow investment in the future of dairy, the firms said.

The boards of the companies will meet in June to vote on the merger and approval is expected later this year. Arla chairman Jan Toft Norgaard will remain chair.

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