International dairy company, Arla Foods, is acquiring German dairy cooperative, Deutsches Milchkontor, and Dutch dairy cooperative, DOC Kaas U.A, collectively known as DMK Group. The European Commission unconditionally approved the merger, which will create the largest dairy cooperative in Europe, with more than 11,000 farmers across seven countries, and a consolidated annual revenue of $30.8 billion (€19 billion).
Arla Foods was advised by global law firm, Norton Rose Fullbright, with the regulatory review process beginning in June 2025. The European Commission was notified of the transaction on 17 April, and concluded on 28 May that the merger would raise no competition concerns in the European Economic Area, and cleared the transaction unconditionally.
Arla Foods CEO, Peder Tuborgh, said the company aims to be among the most trusted partners in safeguarding European food production and in supporting farming practices that reduce our impact on climate and nature.
“With the European Commission’s approval, we can now move forward with something that is about much more than scale or structure. It’s about bringing together two farmer‑owned cooperatives with shared values, complementary strengths and a strong belief in collaboration as the way forward,” said Tuborgh.
“At a time of geopolitical and economic uncertainty, I firmly believe that cooperation across borders is essential to strengthen European food production and secure the future for dairy. This approval allows us to take the next step toward creating a stronger cooperative home for farmers – and to invest with confidence in innovation, food security and the future of dairy.
“With a growing global population, dairy nutrition has much to offer, and by bringing together our milk, brands, production network and strengths, we reinforce our promise to Feed Life,” he said.
The company will continue operating under the Arla Foods name and will be headquartered in Viby J, Denmark, led by Arla Foods chair Jan Toft Nørgaard, and CEO Peder Tuborgh. DMK Group’s CEO, Ingo Müller, will join Arla’s executive management team as executive vice president of post merger integration.
Arla Foods has operated in Australia since 2015 as Arla Foods Mayer Australia (AFMA), a joint venture with premium importer, Mayers Fine Food. AFMA recently expanded its local market presence with the acquisition of New South Wales dairy producer, Brancourts. The company’s ingredients division, Arla Foods Ingredients, also entered the Australian market last year through a partnership with distribution company, Alchemy Agencies. It was granted exclusive commercialisation rights in July for its milk fat globule membrane (MFGM) product, Lacprodan MFGM-10, to be used in infant formula products in Australia.
Arla Foods’ acquisition of DMK Group isn’t the first major global shift this year, following McCormick & Company agreeing to purchase the Unilever Foods business in April, a $64.8 billion (US$44.8 billion) deal. The ingredients world is also shifting, with US-based Ingredion making a conditional all-cash proposal to acquire British rival Tate & Lyle in a deal that would value the company at approximately $5.2 billion (£2.74 billion).
