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Lactalis and Arla agree on future of Walhorn AG

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Arla Foods and the privately-owned dairy company Lactalis have reached an agreement concerning the future of their common joint venture, Walhorn AG in Belgium.
Since the merger between Arla and Eupener Genossenschaftsmolkerei Walhorn (EGM Walhorn) in August 2014, Arla became the legal successor of the 49 per cent ownership of the joint venture company Walhorn AG – with the French dairy company Lactalis owning 51 per cent of the shares.
Since then, Lactalis and Arla have engaged in a dialogue about the future of Walhorn AG, and an agreement has now been reached for Arla to sell its legal shares of Walhorn AG to Lactalis on June 30th, 2015. The existing milk delivery agreement between both parties will continue with all rights and obligations until the end of June 2016. After expiry of the agreement Arla Foods and Lactalis will make another agreement in which Arla Foods takes the obligation to deliver 100 million kilogramm milk per year to Walhorn AG.
Walhorn AG operates a dairy site in the East Belgian village of Walhorn near Eupen, producing primarily milk powder, various liquid milk productsand cream.
The decision by Arla to sellto Lactalisits share of the Walhorn AG joint venture, will not change the future of the 800 members of the cooperative EGM Walhorn becoming cooperative owners in Arla Foods.

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