The move will see Danish-Swedish powerhouse Arla Foods merge with German dairy market leader DMK Group.
European Union (EU) regulators have now given their official assent to the plan, which would result in the creation of the largest dairy producer in Europe.
Set to take effect on 1 June 2026, the agreement will bring together 11,200 dairy farmers operating across seven international markets, as well as a total of 28,000 employees worldwide. Until then, both companies will continue to operate as independent entities.
In a joint statement, both firms said that their merger marked a “significant milestone” and would lead to concerted investment in the scale and resilience of European food production, which in turn will help safeguard food security and nourish a growing global population.
“This is a landmark day for our cooperatives, for the next generation of dairy farmers and for European food production,” said Jan Toft Nørgaard, chair of Arla Foods.
“We can move forward together to secure the necessary scale, long-term economic resilience and investment capability required to contribute to shaping a food sector with a reduced impact on climate and nature. Our cooperatives have united farmers for generations and collaboration across borders has never been more important to help feed life across the planet.”
Through this union, Arla and DMK also reiterate their shared commitment to help co‑create and scale solutions that support more resilient food systems, which are built on operational stability and a robust cooperative economy that can ensure a reliable food supply and a stable foundation for the cooperative’s farmers.
The new entity will operate under the Arla brand name and will be headquartered at Arla Foods’ Visby facility in Denmark.
The companies will bring together a combined milk pool of 19,4 billion kg annually and a pro forma revenue of over 20 billion euros.
Ingo Müller, chief executive officer of DMK Group, added: “The merger will sharpen our technological edge, accelerate innovation, and open new opportunities for growth and collaboration, powered by our shared brands, deep category expertise, and the complementary strengths of DMK and Arla.
“With a collaborative culture and a strengthened position in our markets, we will be even more a pillar of strength in ensuring the secure supply of food for people in Europe and globally.”
