Lactalis has reached an agreement to acquire Arla Foods’ minority stake in Walhorn, bringing all remaining shares in the Belgian dairy company under its control.
Arla has held a 49% stake in Walhorn since August 2014 as a consequence of its merger with Eupener Genossenschaftsmolkerei Walhorn (EGM Walhorn) – a deal that was approved by 94% of both Arla and Walhorn’s boards.
At the time, Lactalis took 51% of the shares in the two companies’ joint venture but has now agreed to buy Arla Foods out for an undisclosed sum.
The producers revealed that the existing milk delivery agreement between both parties would continue with all associated rights and obligations until the end of June 2016. They will then enter into a fresh agreement that will see Arla Foods deliver 100m kilograms of milk to Walhorn every year.
Walhorn operates a dairy site in eastern Belgium, which it uses to produce milk powder, various liquid milk products, and cream.
“The decision by Arla to sell to Lactalis its share of the Walhorn AG joint venture will not change the future of the 800 members of the cooperative EGM Walhorn becoming cooperative owners in Arla Foods,” the Århus-based company confirmed.
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