The planned merger of two German dairy cooperatives Bayernland and Bayerische Milchindustrie (BMI) has collapsed after Bayernland withdrew from the proposed deal one week before the company was to sign the contract.

The two southern Germany-based dairies began to discuss the merger back in July this year. The merged company was expected to be one of the largest dairy retailers in Germany with annual sales of around €1bn.

Bayernland withdrew from the deal without citing any specific reasons, reported the German News Digest.