Blog: Milk mergers - just a matter of time
Dean Best | 19 December 2007
Whispers of a potential merger between Dutch dairy groups Friesland Foods and Campina have been heard many times in recent years.
Before now, both companies have quashed that prospect but it seems global conditions in the dairy sector may have forced their hand.
This year, those close to the industry have predicted a wave of consolidation in the sector as dairy companies look to strengthen amid soaring dairy commodity prices.
In the UK, First Milk and Milk Link are looking to merge, while in Australia, a number of potential suitors are circling local co-operative Dairy Farmers.
Friesland and Campina have to clear a number of hurdles before formally joining forces but market forces are pulling them together. And it seems likely they won’t be the last.
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