DMK Merging with Arla to Form European Dairy Giant
Deal News | Jun 27, 2025 | Legal Community Germany
In a significant consolidation of the European dairy sector, Germany's largest dairy cooperative DMK Group, along with the Dutch DOC, is set to merge with Denmark's Arla Foods to create a dominant pan-European dairy cooperative. Named Arla, the merged organization aims for an annual combined revenue of €19 billion and will be headquartered in Viby J, Denmark. Legal guidance for the merger is being provided by Gleiss Lutz, with teams from Stibbe and Gorrissen Federspiel advising on Dutch and Danish legal aspects respectively. The merger intends to solidify market presence across Europe and is subject to regulatory approvals.
Sectors
- Dairy Industry
- Legal Services Industry
Geography
- Europe – The article discusses a cross-border merger involving German, Dutch, and Danish companies, highlighting its European context.
- Germany – DMK Group, the target of the article, is based in Germany, where it is the largest dairy cooperative.
- Denmark – Arla, one of the companies involved in the merger, is headquartered in Denmark.
Industry
- Dairy Industry – The article centers on the merger of dairy cooperatives DMK and Arla, highlighting the consolidation within the Dairy Industry.
- Legal Services Industry – The involvement of legal advisors from Gleiss Lutz, Stibbe, and Gorrissen Federspiel in the merger transaction emphasizes the article's connection to the Legal Services Industry.
Financials
- €19 billion – The expected combined annual revenue of the merged entity.
- €5.1 billion – DMK Group's revenue in 2024.
- €13.8 billion – Arla's revenue in 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| DMK Group | Target Company | Company | Germany's largest dairy cooperative consisting of Deutsches Milchkontor eG and DOC, processing 5.3 billion kg of milk annually. |
| Arla Foods amba | Bidding Company | Company | The largest European dairy cooperative based in Denmark, with a significant presence in multiple European countries. |
| Gleiss Lutz | Legal Advisor | Company | The law firm advising DMK on their cross-border merger with Arla. |
| Stibbe | Legal Advisor | Company | The law firm advising DMK Group on Dutch law matters for the merger. |
| Gorrissen Federspiel | Legal Advisor | Company | The law firm advising on Danish law for the merger between DMK and Arla. |