Dutch dairy collective FrieslandCampina has agreed to merge with smaller Belgian rival Milcobel, it said, creating a company with combined revenues of more than €14 billion ($14.66 billion).
No financial details of the deal were disclosed.
The merged company would be active in 30 countries, with almost 22,000 employees worldwide with dairy delivered by around 11,000 member companies.
FrieslandCampina generated revenue of €13 billion in 2023, while Milcobel had €1.4 billion in sales.
The takeover does not include Milcobel's ice-cream division Ysco, which will be sold, the companies said.
The companies aim to present a detailed plan for their deal early next year.
'Combined Dairy Cooperative'
Sybren Attema, chair of the board of Zuivelcoöperatie FrieslandCampina UA, stated, “The combination of FrieslandCampina and Milcobel is bigger than the sum of its parts. It creates a future-oriented, combined dairy cooperative that is resilient and capable of capitalising on opportunities in the dynamic global dairy market.
“This strengthens our appeal to member dairy farmers, business partners and employees. Moreover, this step supports us in realising a leading milk price for our member dairy farmers, now and in the future.”
Milcobel and FrieslandCampina complement each other in market positions and product portfolios and the merger will create further business development opportunities in market segments such as consumer cheese, mozzarella, white dairy products (such as milk, buttermilk, and yoghurt), and ingredients, among others.
Betty Eeckhaut, chair of the board of Milcobel, added, “Through our regional complementarity we will become the cooperative dairy partner of choice for current and new members, with a solid milk supply for a successful future.
“For employees, the new organisation provides great opportunities to grow in an international environment. For customers, this merger means more innovation, an expanded product portfolio and further professionalisation of our services.”
News by Reuters, additional reporting by ESM.
