Milcobel aims to merge with Dutch FrieslandCampina

“The merger of FrieslandCampina and Milcobel will create an international and forward-looking organization that can better seize opportunities and tackle challenges in the global dairy market”, the companies stated in a press release.

Financial details of the deal have not been disclosed. According to the companies, the merger will provide “further development opportunities in market segments such as consumer cheese, mozzarella, milk, buttermilk, and yogurt, as well as ingredients, alongside efficiency and expertise benefits.”

Sybren Attema, Chairman of FrieslandCampina, emphasized that the deal is a cooperative merger, not an acquisition. “We are bringing all our activities together and moving forward as a strong cooperative, offering greater resilience and perfectly complementing each other’s markets.” Both Milcobel and FrieslandCampina will retain their existing names.

Based on the combined financial figures of Milcobel and FrieslandCampina for 2023, the new organization is projected to generate over 14 billion euros in revenue, operate in 30 countries, and employ nearly 22,000 people worldwide.

Milcobel, known for brands such as Brugge Cheese, Nazareth Cheese, and Milcobel Butter, reported revenue of 1.3 billion euros last year. It is Belgium’s largest dairy company, employing approximately 1,500 people.

The management noted that it is too early to determine the potential impact of the merger on employees. “We are announcing a proposed merger now, but there are still many steps to take before it is finalized. Therefore, it is far too early to discuss these matters”, they stated.

The merger still needs to be approved by the competition authorities. The companies aim to have a merger proposal developed in the first half of 2025 and then discuss this with the members of FrieslandCampina and the shareholders of Milcobel. The agreement will then be submitted for approval to the shareholders of Milcobel and the member council of FrieslandCampina.