Commission unconditionally approves Arla’s acquisition of DMK and DOC

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The European Commission has unconditionally approved, under the EU Merger Regulation, the proposed acquisition by Arla Foods amba (‘Arla‘) of Deutsches Milchkontor eG (‘DMK‘) and Drents Overijsselse Coöperatie Kaas U.A.(‘DOC‘). The Commission concluded that the transaction would raise no competition concerns in the European Economic Area (‘EEA’).

Arla, DMK and DOC are dairy cooperatives that collect raw milk from their associated farmers and process it into a wide range of dairy products, which they sell in a number of countries in the EEA and beyond. Such products include fresh milk, butter, yoghurt, cream, cheese or whey-based ingredients.

The Commission’s investigation

The Commission investigated the impact of the transaction in a large number of markets in the EEA. In particular, it looked at the market for raw milk procurement from farmers in Germany, and the markets for the supply of dairy products and whey-based ingredients to retailers, wholesalers and industrial customers, in Denmark, Finland, Germany, the Netherlands and Sweden. Based on its market investigation, the Commission found that the transaction, as notified, would not significantly reduce competition in these markets.

More specifically:

• Concerning the raw milk procurement, the companies compete in a number of areas, especially in Northern Germany. The Commission found that the proposed transaction would be unlikely to negatively affect farmers in such areas, because of Arla’s cooperative structure, pursuant to which Arla is committed to purchasing all the milk produced by its associated farmers and pays the same price to all of them, irrespective of their location. As a result, Arla would not have the ability to reduce the milk price paid to its associated farmers in areas with high market shares following the transaction. In addition, Arla would not have the incentive to do so, as associated farmers would then switch to other cooperatives.
• Concerning the supply of dairy products to retailers, the companies compete primarily in the supply of private-label products. Based on the Commission’s investigation, there will remain sufficient competition, as a large number of credible competitors will continue to participate in retailers’ call for tenders and considering retailers’ practice of multi-sourcing and launch calls for tenders.
• Concerning the supply of whey-based ingredients, the companies compete in the supply of permeate powder and whey protein concentrate in the EEA. According to the Commission’s investigation, a number of credible competitors will continue to exert sufficient competitive pressure in these markets and there are certain alternative ingredients that can be used as substitutes in specific end applications.
• The Commission also found only a limited risk of tied or bundled deals (in which a retailer is strongly encouraged to buy multiple products together instead of choosing separately), given retailers’ established practice of holding separate negotiations for private-label and branded dairy products. In addition, DMK’s brands would only marginally strengthen Arla’s bargaining position with retailers.

The Commission therefore concluded that the proposed transaction would raise no competition concerns, and cleared the transaction unconditionally.

Companies and products

Arla, headquartered in Denmark, is a vertically integrated dairy cooperative of over 7.000 farmers across Denmark, Sweden, the UK, Germany, Belgium, Luxembourg, and the Netherlands. Arla collects raw milk from its associated farmers and processes it into a wide range of dairy products, including fresh milk, butter, yoghurt, cream and cheese. It also operates an ingredients business through its subsidiary Arla Foods Ingredients Group P/S, which focuses on the development and production of milk- and whey-based nutrition solutions and ingredients. Arla sells its products globally and has production facilities in a number of countries.

DMK eG, headquartered in Germany, is a vertically integrated dairy cooperative of approximately 4.000 German dairy farmers. DMK collects raw milk from its associated farmers, which it then supplies to DMK Deutsches Milchkontor GmbH (‘DMK GmbH’), a dairy company based in Germany. DMK eG owns 90% of the shares in DMK GmbH, and the remaining 10% of shares are held by DOC. DMK GmbH is the operating company of DMK eG and DOC, responsible for processing the milk from all their associated farmers into a wide range of dairy products, including basic milk products, cheese, baby food, ice cream, and dairy ingredients. DMK GmbH sells its products globally and has production facilities in a number of countries.

DOC, headquartered in the Netherlands, is a dairy cooperative of approximately 600 dairy farmers across the Netherlands and Germany. DOC collects milk from its associated farmers, which it then supplies to DMK GmbH for further processing into a wide range of dairy products.

Merger control rules and procedure

The transaction was notified to the Commission on 17 April 2026.

The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the EU Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.

The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).

For more information

More information will be available on the Commission’s competition website, in the public case register under the case number M.12115.