Denmark’s Arla Foods and The Netherlands’ Campina have decided that more time is needed to consider certain aspects related to the proposed merger between the two dairy companies.
“In order for a merger proposal to be presented to the respective boards of representatives, it will be necessary to consult Danish authorities on competition issues with regard to members’ participation units (MPU’s),” Campina said.
Both companies have decided to postpone the merger vote scheduled for 6 April, and now intend to present the merger proposal to the boards towards the end of April.
“We had a tight timetable for the merger process. We cannot, however, provide the necessary clarification within the original time schedule. For such important matters we need time to have all unresolved issues addressed before we present the merger proposal to the boards of representatives,” said Arla Foods’ chairman Knud Erik Jensen.
“We’re in the middle of a merger process that will create a new dairy cooperative, and a process like that demands maximum care,” added Kees Wantenaar, Campina’s chairman of the board/supervisory board. “We set ourselves an exceptionally tight schedule and we’re now allowing ourselves a little more time.”