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Merger notified

Press Release   •   Dec 16, 1999 17:00 CET

MD Foods and the Swedish dairy company, Arla, have notified the authorities in a number of countries about the merger between the two companies. This has been necessary because the two companies' combined turnover is below the 5 billion ECU, the limit which requires notification to be given to the EU merger authorities.

Since, however, some doubts have arisen as to whether the combined turnover is, in fact, below the EU threshold, MD Foods has asked the EU Commision to approve both the calculation methods and their result. This approval has been granted.
Notification has not only been given to the Swedish and Danish authorities, but also to Finnish, UK, Greek, German and Norwegian authorities.
Provided no objections are raised by the respective authorities, the merger will take effect from April 17, 2000.
Managing Director Jens Bigum stresses, however, that although the two Boards of Representatives have approved the merger, the actual merger process cannot begin until the approval of the relevant authorities has been obtained. Until further notice, the two companies will continue as before.
"A situation may arise where the authorities will impose conditions which will affect the basis of the merger as approved by the respective Boards of Representatives to such an extent that it will be necessary to seek their approval once more," said Jens Bigum."