Arla Foods amba has purchased the remaining shares of the UK subsidiary, Arla Foods UK plc, which has subsequently been delisted from the London Stock Exchange. As of today, the UK subsidiary is fully owned by Arla Foods amba.
Since the merger between Arla Foods amba and Express Dairies in 2003, Arla Foods has owned 51 per cent of the shares in Arla Foods UK plc. The purchase of the remaining 49 per cent was negotiated at a price of 71 pence (approx. DKK 8) per share, which values the remaining shares at DKK 2.4 billion.
"I'm delighted and relieved that the long process, which started in October 2006, is now concluded. It feels good to know that we can now begin to integrate our very large UK business into the rest of Arla Foods. It will be easier for our global range to access the UK market, and for the UK company and its staff to interact better with the Arla Group and influence the entire Group's strategic development," says Arla Foods' CEO Peder Tuborgh.
"The UK is our largest single market with proud and strong brands like Lurpak and Cravendale, and we have the opportunity to develop strong market positions for, e.g., speciality cheese. We've had very successful exports to the UK over the past few years, and we've taken this step because we see great potential in the export, in the local production, and in maintaining close relations to the British milk farmers," says Peder Tuborgh.
Tim Smith, Chief Executive of Arla Foods UK plc comments: "Today marks a key point in the development of our business as we continue the drive to create the UK's leading dairy company. The strength of Arla Foods amba provides us with a compelling and powerful resource to create the profitable growth for which we are all striving."
The UK subsidiary is now a part of Arla Foods' Consumer Group UK, which will over the next few weeks, together with the Executive Board of Arla Foods amba, start the development of the integration plans for the company.