Is a strong year for dairy M&A a sign of a healthy sector?

Dairymen boardroom

Dairy’s ability to play into key consumer trends has heralded a busy year of deals, usually a sign of a sector in good health

There were smiles all round as Arla and DMK Group boards shook hands on a multibillion-pound deal in June. Pending the green light from regulators, the merger between the two dairy behemoths is set to create Europe’s largest dairy co-operative. The vast network will house more than 12,000 farmers, eight billion litres of processed milk and €19bn (£16.5bn) in consolidated revenues.

“This partnership advances our vision for the future of dairy: delivering nutritious, high-quality products and driving innovation in Europe and beyond, while securing a strong milk price for our farmer owners,” said Bas Padberg, MD of Arla Foods UK, of the move.

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