FrieslandCampina and Belgian Co-op Milcobel have announced their intention to merge, without giving any financial details of the proposed deal. According to information released by both co-ops, the deal is expected to be finalised by the middle of next year, with that deal then put to shareholders of Milcobel and FrieslandCampina’s member’s council.
FrieslandCampina and Belgian Co-op Milcobel have announced their intention to merge, without giving any financial details of the proposed deal.
According to information released by both co-ops, the deal is expected to be finalised by the middle of next year, with that deal then put to shareholders of Milcobel and FrieslandCampina’s member’s council.
The merger would also need to be approved by regulatory bodies.
The two processors are vastly different in size, with FrieslandCampina’s 2023 turnover at €13.1bn on a milk pool of 9.4bn kg, while Milcobel’s 2023 turnover was €1.3bn on 1.3bn kg of milk.
In 2023, FrieslandCampina reported a net loss of €143m, a significant reversal of 2022’s profit of €292m.
Reorganisation
Milcobel has reported a net loss of €11.6m in 2023, down from a €4.4m profit in 2022. The co-op’s CEO departed in February, citing a difference of opinion with the board over the vision for the processor.
In April, Milcobel announced a reorganisation of the company, which included the loss of around 130 jobs, and in July it announced the sale of its ice-cream business to an investment management firm.
It said at the time of that announcement that it “intends to focus on dairy business”.
The co-ops said that the merger “will create one international, future-oriented organisation that can seize opportunities and address challenges more effectively in the global dairy market” and that it “offers further business development opportunities in market segments such as consumer cheese, mozzarella, white dairy products (such as milk, buttermilk, and yoghurt), and ingredients”.
This is a subscriber-only article
SHARING OPTIONS: