Arla Foods and DMK Group Announce Merger to Form Europe’s Second-Largest Dairy Producer

Scandinavian dairy giant Arla Foods is joining forces with Germany’s largest milk processor, DMK Group, in a landmark merger that would create Europe’s second-largest dairy company.

A New Industry Powerhouse

If the merger is approved by both companies’ Representative Councils and relevant competition authorities, the new entity will unite 12,000 farmers and generate €19 billion in annual revenue.

This would make Arla the new number two in Europe’s dairy industry—second only to France’s Lactalis.

A Strategic, Not Surprising, Move

With €13.8 billion in revenue, Arla clearly holds the dominant position in the deal. It’s no surprise, then, that the newly merged company will simply retain the Arla name and be headquartered in Viby, Denmark.

Arla’s current CEO, Peder Tuborgh, and Chairman, Jan Toft Nørgaard, will continue in their roles. DMK’s CEO, Ingo Müller, has been invited to join Arla’s leadership team to oversee the integration of DMK into the new company.

The merger comes as dairy producers prepare for an expected decline in the European milk market. The partners hope that combining their diversified product portfolios and complementary market positions will give the new company greater resilience, reports Lebensmittel Zeitung.

Regulatory approval is expected by late 2025.

This deal surpasses last year’s merger between Dutch firm FrieslandCampina and Belgium’s Milcobel by a full 25% in scale.