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Vote on merger

Press Release   •   Dec 01, 1999 18:09 CET

On Thursday, 268 Danish milk producers and 15 staff representatives will vote on the proposal put forward by the Board of MD Foods that the Group merges with the Swedish dairy company, Arla, to form Europe's largest dairy group under the name, Arla Foods amba. The vote will take place at the Vingsted Centre near Vejle in Central Jutland.

At the same time, 145 milk producers will gather at Arla's General Meeting at Stockholm City Conference, to consider the Arla Board's recommendation of the merger. Apart from the language differences, the phrasing of the two proposals is identical.

However, whereas MD Foods' Board of Representatives can approve the Board's recommendation by a simple majority vote, Arla's procedure is more complex.

The General Meeting requires a unanimous "yes" vote for the planned merger to proceed. If the merger proposal is supported by a majority only, a second vote will be taken at an Extraordinary General Meeting to be held two weeks later, on December 16. Here a majority of two thirds is required for the merger to be approved.

A merger between MD Foods and Arla will create a dairy company of almost 18,000 co-operative owners, approximately 19,000 employees and a total milk volume of 7 billion kg.

The results of Thursday's votes will be announced on MD Foods' website.