Arla Foods and DMK Group say they have received all required regulatory approvals for their planned merger, clearing the way for one of Europe’s largest farmer-owned dairy combinations to move ahead.
The Danish-Swedish cooperative Arla and Germany-based DMK first announced their plan to merge in April 2025. The deal was later approved by the cooperatives’ representative bodies and has now passed the regulatory stage, according to the companies.
The merger is expected to take effect on June 1, 2026. Until then, the two businesses continue to operate separately.
What the merger creates
The combined cooperative will operate under the Arla name and is expected to bring together about 11,200 dairy farmers across seven countries. The companies say the enlarged group will have a total annual milk pool of 19.4 billion kilograms and revenue of more than €20 billion.
It will also bring together about 28,800 employees globally, giving the new Arla a larger base across farming, production, retail, foodservice and ingredients markets.
For dairy buyers, the practical importance is scale. A larger Arla could offer broader product coverage, more integrated supply and greater capacity for private label, foodservice and ingredients customers. For farmers, the companies are presenting the merger as a way to strengthen the cooperative model and create a more stable platform for future dairy production.
Quick comparison: before and after the deal
| Area | What changes | Why it matters |
|---|---|---|
| Ownership base | About 11,200 dairy farmers across seven countries | A larger farmer-owned cooperative with wider regional reach |
| Milk pool | Expected annual milk pool of 19.4 billion kilograms | More scale for production planning and supply commitments |
| Revenue | Expected revenue above €20 billion | Greater weight in European and global dairy markets |
| Brand structure | The merged entity will use the Arla name | Customers and partners will deal with a single enlarged cooperative identity |
| Headquarters | Viby, Denmark | Continuity with Arla’s current headquarters |
What buyers and partners should watch
This is not a consumer product comparison, but it does affect buying decisions for retailers, food manufacturers, foodservice operators and ingredient customers that depend on reliable dairy supply.
Key points to assess include:
- Whether existing supply agreements remain unchanged during the integration period.
- How quickly the merged company combines product portfolios and customer systems.
- Whether the larger milk pool improves availability for private label, ingredients and foodservice contracts.
- How the new structure affects regional sourcing, delivery planning and account management.
The companies have framed the merger around stronger European food production, food security and investment capacity. Those are broad goals, but the near-term test will be operational: how smoothly Arla and DMK integrate their people, farmers, facilities and customer relationships.
Leadership and integration
The merged company will be headquartered in Viby, Denmark. Arla chair Jan Toft Nørgaard is set to serve as chair of the enlarged entity, while current Arla chief executive Peder Tuborgh will continue as CEO.
Current DMK Group CEO Ingo Müller is expected to join the executive management team and lead post-merger integration.
That integration process begins after the deal takes effect. For now, the regulatory approval removes the main external barrier and shifts attention to execution: how the new Arla combines two major dairy cooperatives without disrupting farmers, employees or customers.