European dairy produce cooperatives Eupener Genossenschaftsmolkerei Walhorn (EGM Walhorn) and Arla Foods have unveiled plans to merge their activities.
The boards of directors have announced plans to their members and the representatives.
Arla Foods chairman Åke Hantoft said that the proposed merger will allow Arla to pursue its growth plans together with EGM Walhorn.
"The Walhorn production site complements our production sites in Pronsfeld, in Germany, and Nijkerk, in the Netherlands," added Hantoft.
"In addition, EGM Walhorn would provide us with an opportunity to grow our milk pool across Europe and the merger would be an important step towards achieving our strategic ambitions, which are focused on growth."
The proposed merger would allow EGM Walhorn to retain its position and continue with its cooperative traditions.
The boards of representatives are expected to vote on the proposed plans in May.
The transaction is expected to close in July, subject to approval of the competition authorities.
