German milk groups Campina and Molkerei H. Strothmann have begun talks with a view to collaborating in a number of areas in a bid to increase their share of the international market.

Both Campina and Strothmann are looking to expand their presence in the international dessert products market, and the two groups have been working together for a long time towards this end.

But it is only in recent weeks that the two have been considering whether closer formal links would enable them to expand their strong market positions further. Campina said that the possibility of a takeover, rather than a merger, had also not been ruled out.

Strothmann, a private company celebrating its centenary in 2003, specialises in desserts, yoghurts and dairy drinks. It has an annual turnover of €120 million. Presumably any takeover would be by Campina - a much larger player with sales of €3.9 billion and leading brands such as Campina, Landliebe and Mona.