Lactalis has taken full control of Walhorn AG, the Belgian dairy venture it had with European peer Arla Foods.
Walhorn AG makes products under sold under the Lactalis brand and own label. Lactalis has owned 51% of the business, with Arla attaining the rest of the shares when it merged with Belgium-based Eupener Genossenschaftsmolkerei last year.
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Since that deal, Lactalis and Arla have been in talks about the future of Walhorn AG. "We were open to a variety of solutions. Being competitors in a series of markets, it seemed natural for both parties for one party where one party could take full control. Being the majority shareholder, the natural one was Lactalis."
The financial details of the agreement were not disclosed. However, Arla said an existing deal on milk supply will continue until the end of June next year. Arla will then deliver 100 million kilograms of milk a year to Walhorn AG.
"With this agreement Arla will sell its minority share of the production site to Lactalis on terms both companies benefit from and the former Walhorn farmers are still members of Arla and supply their milk to Arla, which was our main interest in the merger," an Arla spokesperson said. "It's an agreement that both companies are happy with. We are pleased to have found a solution that ensures the future of the production site and its employees."
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By GlobalData
