April 11, 2008

Friesland Foods and Campina to merge

The Netherlands' largest dairy groups, Friesland Foods and Campina, will merge to create one of the world's largest dairy companies with combined sales of EUR9.1 billion (US$14.4 billion).

The merged group would have 22,000 employees, 17,000 member farmers and more than 100 production and distribution facilities worldwide.

According to a Friesland spokesman, the new company, which will be called FrieslandCampina, will rank third or fourth in the world by dairy sales after Switzerland's Nestle and France's Danone.

The merged company expected to cut 500 jobs by 2011 and reach annual synergies of EUR175 million (US$277 million) by 2012.

Member certificates and bonds, which the member farmers could buy and sell among themselves, would fund the merger.

Friesland and Campina are both co-owned by dairy farmers.

The member farmers will vote on the merger on May 7.