Sweden approves Arla and Milko merger

The Swedish Competition Authority Konkurrensverket has approved the merger of dairy cooperatives Arla and Milko, the latter of which would have been facing the possibility of a bankruptcy had the deal not gone through.

One condition imposed by the authority is that Arla has to sell the Milko dairy plant located in Grådö in Dalarna, Sweden, as well the five Milko brands Bollnäsfil, Tiger, Bärry, Fjällfil and Fjällyoghurt to a third party within six months.

Following the merger, Milko members will become members and owners in Arla Foods, and Milko trademarks will gradually be replaced by Arla trademarks.

Arla’s Swedish market director Christer Åberg said that, via the merger, the dairy cooperative will have access to more milk and be in a position to continue to develop the Swedish dairy market for the benefit of employees, dairy farmers and consumers alike.

The merger, which was announced in June this year, is expected to be completed by the end of November.