DMK Group and Arla Foods merge to create Europe’s largest dairy cooperative

In one of the most significant mergers in the European agribusiness sector this year, DMK Group—Germany’s largest dairy cooperative—announced its cross-border merger with Arla Foods, the leading European dairy cooperative headquartered in Denmark.

The transaction, approved by all corporate bodies involved on June 18, 2025, envisions the transformation of DMK and its Dutch affiliate Drents Overijsselse Coöperatie Kaas U.A. (DOC) into a European Cooperative Society (SCE), which will then merge with Arla. The new entity will operate under the name Arla Foods amba, with its headquarters based in Viby J, Denmark, and aims to generate a combined annual revenue of €19 billion.

Consolidating European dairy leaders

The DMK Group, which already operates jointly with DOC, is a major player in the European dairy market, processing approximately 5.3 billion kilograms of milk annually and employing nearly 6,800 staff across 10 countries. With household brands such as MILRAM, Oldenburger, and Humana, DMK reported €5.1 billion in revenue for 2024.

Arla Foods, in comparison, recorded €13.8 billion in revenue last year and processed 13.7 billion kilograms of milk. The Danish cooperative boasts a workforce of 23,000 employees operating from 58 sites across more than 30 countries.

Upon completion, the combined cooperative will unite more than 12,000 farmer-members, establishing the most extensive member-owned dairy business in Europe.

Gleiss Lutz is acting as lead counsel for DMK Group, advising on German law, corporate structuring, tax, competition, and regulatory aspects of the transaction. The core team includes:

• Dr. Stephan Aubel and Martin Hitzer (Partners, Corporate and Capital Markets, Frankfurt/Düsseldorf – Lead)

• Dr. Julius-Vincent Ritz, Dr. Charlotte Evers, Dr. Christina Aye, Dr. Walter Andert, and Dr. Thorsten Gayk (Corporate/M&A)

• Dr. Ocka Stumm, Dr. Dominik Monz, and Julian Kettemer (Tax)

• Dr. Wolfgang Bosch, Dr. Alexander Fritzsche, Dr. Birgit Colbus, Dr. Juliane Langguth, Dr. Thomas Bernhard, and Mario Meinzer (Competition/Antitrust)

• Dr. Thomas Winzer and Dr. Tobias Abend (Employment)

• Dr. Jacob von Andreae and Aylin Hoffs (Foreign Trade Law)

The Dutch firm Stibbe is advising DMK on Dutch law, while Gorrissen Federspiel is handling Danish legal matters.

Next steps

The deal is subject to customary closing conditions, including regulatory clearance across several jurisdictions. Once approved, it is expected to redefine the scale and influence of dairy cooperatives in Europe, offering broader market reach and stronger supply chain integration.

This merger comes amid growing consolidation in the agri-food industry as producers seek scale, efficiency, and resilience in a highly competitive European market.