Arla looking for a partner

- Last updated on GMT

Related tags: Arla foods, Mergers and acquisitions

Arla Foods is seeking a new partner, according to the Swedish
business daily Dagens Industri.

Arla Foods​ is seeking a new partner, according to the Swedish business daily Dagens Industri​. The news source suggests that the dairy giant is keen to forge a new alliance with a European company in order to achieve its growth targets.

"We can't live up to our long term growth objective only through smaller acquisitions and organic growth,"​ said Arla Foods chief executive åke Modig. "In a member owned business, as Arla Foods is, it is impossible to finance growth through acquisitions.

"That is the reason why we are looking for a merger within the billion dollar companies among other farmer co-operative dairies."

Potential candidates include German firm Nordmilch, which has a turnover of €2.1 billion, the Dutch dairy company Campina with a turnover of €3.6 billion, and Finnish Valio with a turnover of € 1.37 billion.

Three years ago the Swedish cooperative dairy merged with Danish MD Foods and became Arla Foods. The business has a current turnover of €4.97 billion.

Rumours of mergers and acquisitions are rife in the dairy market at the moment. The industry is facing a tough time following the review of the European Common Agricultural Policy (CAP).

Related topics: Manufacturers, Arla Foods

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