June 17, 2015

Arla sells legal shares of joint venture to Lactalis

European dairy cooperative, Arla Foods, and French dairy company, Lactalis, had reached an agreement concerning the future of their common joint venture, Walhorn AG in Belgium.

Since the merger between Arla and Eupener Genossenschaftsmolkerei Walhorn (EGM Walhorn) in August 2014, Arla legally owned 49% of Walhorn AG, with Lactalis having 51% of the shares.

Recently, Lactalis and Arla had engaged in a dialogue about the future of Walhorn AG, resulting in an agreement for Arla to sell its legal shares of Walhorn AG to Lactalis on June 30, 2015.

The existing milk delivery agreement between both parties will continue with all rights and obligations until the end of June 2016. After the expiry of the agreement, Arla Foods and Lactalis will make another agreement in which Arla Foods is obligated to deliver 100 million kg of milk yearly to Walhorn AG.

Walhorn AG operates a dairy site in the East Belgian village of Walhorn near Eupen, mainly producing milk powder, various liquid milk products and cream.