Blog: Farmers back Arla, Milk Link merger

Michelle Russell | 27 June 2012

The proposal to merge Milk Link and Arla Foods has received a positive endorsement from their respective farmer owners.

In the last major hurdle before the deal is formalised, 99.53% of votes cast by Milk Link members supported the merger, while 96.8% of Arla's board of representatives voted in favour.

Arla announced plans to merge with UK dairy farmer co-operative Milk Link last month in a deal that will create the country's largest dairy group.

Now approved, the merger will form an entity with a combined turnover in excess of GBP2bn (US$3.16bn), processing around 3bn litres of milk per annum, around 24% of total UK production.

"Over the past month we have undertaken a comprehensive programme of communication and engagement with our members to ensure they fully understand the rationale for and benefits of the merger," said Milk Link's chief executive Neil Kennedy. "This included the holding of 34 member roadshows across the country and the overwhelming vote in favour very much reflects the positive reception we have had at each of these."

The deal is the second largest in the UK dairy sector this year. In February, German dairy giant Müller declared its takeover bid for Robert Wiseman Dairies "unconditional" after securing almost 94% of the UK milk supplier's shares.


Click here to read our interview with the CEOs of both companies.



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