Arla Foods, DMK Group secure regulatory approval for US$23.3B merger 

UK – Arla Foods and DMK Group have secured all required regulatory approvals for their planned merger, clearing the final major hurdle for the creation of what the companies describe as Europe’s largest farmer-owned dairy cooperative. 

The merger is expected to take effect on 1 June 2026 and will bring together approximately 11,200 dairy farmers across seven European countries. The combined business will generate annual revenues exceeding €20bn (US$23.29M) and manage a milk pool of 19.4 billion kilograms. 

Under the agreement, the new entity will operate under the Arla name, with its headquarters remaining in Viby J, Denmark. 

The companies said the merger comes amid increasing pressure on food security, agricultural resilience and sustainability across Europe, and is designed to strengthen long-term dairy production capacity while accelerating innovation and operational scale. 

Jan Toft Nørgaard, chair of Arla Foods, described the approval as a defining moment for both cooperatives. 

“This is a landmark day for our cooperatives, for the next generation of dairy farmers and for European food production,” Nørgaard said. 

“We can move forward together to secure the necessary scale, long-term economic resilience and investment capability required to contribute to shaping a food sector with a reduced impact on climate and nature,” he added. 

The merger follows years of cooperation between the two organisations and reflects a broader consolidation trend within Europe’s dairy sector, where companies are increasingly seeking efficiency gains, stronger supply chains and expanded global competitiveness. 

The combined group will employ around 28,800 people worldwide and will strengthen its position across retail, foodservice and ingredients markets. 

The companies also expect the merger to enhance private label production capabilities and drive category-level innovation across their expanded network. 

Peder Tuborgh, CEO of Arla Foods, said the merger will reinforce the role of dairy in global nutrition. 

“With a growing global population, dairy nutrition has much to offer,” Tuborgh said. “By bringing together our milk, brands, production network and strengths, we reinforce our promise to Feed Life.” 

DMK Group CEO Ingo Müller said the integration would enhance innovation and market strength. 

“The merger will sharpen our technological edge, accelerate innovation, and open new opportunities for growth and collaboration,” Müller said. 

Under the planned leadership structure, Nørgaard will serve as chair, Inger-Lise Sjöström as vice chair, and Tuborgh will continue as CEO. Müller will join Arla’s executive management team as executive vice president responsible for post-merger integration. 

Arla Foods currently records revenues of €15.1bn and processes 14.3 billion kilograms of milk annually, while DMK Group generates €5.3bn in revenue and handles 5.1 billion kilograms of milk. 

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