The Great Milk Merger
With a € 9.1 billion turnover a year, the newly merged FrieslandCampina is going to be a global giant based in Europe. The synergies of both the companies coming together are great and this augurs well for the future of dairy products in Europe. Between the two companies, there will be 8.3 billion kilograms of milk coming in from 17000 member dairies.
This merger is sure to guarantee a size that ensures continuity as well as stability. Especially because both companies in their individual capacities were strong organizations in dairy on the international scene. It is hoped that this merger will mean higher efficiency and lower costs. It could also herald in a new system of member financing with member bonds. The member dairies can voice their opinion on the merger and the European Commission is expected to announce its decision in the fourth quarter this year.
