The Dutch dairy company FrieslandCampina calls reports of an imminent merger with the Scandinavian Arla 'speculative', and Arla even says '100 percent inaccurate'. In recent days, trade media in several European countries have reported possible merger talks.
According to the Danish Landbrugs Avisen, Royal FrieslandCampina is under pressure due to plans in the Netherlands to slow down the dairy industry due to the large nitrogen emissions. Scandinavian dairy circles also refer to an earlier Rabobank study, which foresees that FrieslandCampina will be overtaken by Arla in the international ranking in terms of turnover next year.
Last year Friesland Campina was just slightly bigger than Arla. However, Arla's turnover is expected to continue to grow, which is not the case at Friesland Campina. A merger would create the largest dairy group in the world with a total turnover of more than 22 billion euros. This makes it bigger than the French Lactalis, with a turnover of 21.1 billion euros.
The European Commission would probably only approve the possible merger under certain conditions, just like at the time with the merger of Friesland and Campina. In 2003 and 2005, Arla first tried to merge with the then Campina, but the boards of both companies could not agree. Instead, Campina opted in 2008 to merge with Royal Friesland Foods.