European dairy co-operatives DMK and DOC Kaas have put their planned merger on hold.
In a joint statement, the firms said they “have … retracted the merger control registration for their planned amalgamation” following consultation with the European Commission.
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DMK and DOC Kaas said they will resubmit their registration in the near future.
“The companies have decided to retract their registration since the complexity of the markets for dairy products demands a more extensive portrayal of market conditions. The parties concerned therefore believe that retracting and then resubmitting the merger is the most efficient and quickest option for achieving the desired approval.”
A spokesperson for DMK declined to comment further, adding as it was a “pending case” they did not want to give any further information beyond the statement.
The merger was announced in May this year, following previous occasions of the two looking at merging their businesses. Initially they looked at the possibility of merging in 2011 but their discussions failed to secure backing of DOC Kaas’ farmer-owners. However, DOC Kaas management insisted the latest merger proposals would be more appealing to their farmers.
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By GlobalDataUnder the deal, DOC Kaas would operate as a 100% owned subsidiary of DMK but would retain its “name and identity”. DOC Kaas and DMK members would receive the same price for the milk they supply.
DOC Kaas members agreed to the merger proposal on 21 May with 95.3% of votes backing the deal.
