The Managing Director of MD Foods of Denmark and President of Arla of Sweden, both cooperatives were considering whether their companies should merge to create Europe’s largest dairy companies. Both companies wanted the success of its joint venture with a much closer relationship to continue, but the question of whether their owners (the milk producing farmers in each country) would approve the merger. The two companies were different in size, organizational structure, corporate culture, m … Read more »

The Managing Director of MD Foods of Denmark and President of Arla of Sweden, both cooperatives were considering whether their companies should merge to create Europe’s largest dairy companies. Both companies wanted the success of its joint venture with a much closer relationship to continue, but the question of whether their owners (the milk producing farmers in each country) would approve the merger. The two companies were different in size, organizational structure, corporate culture, monetary currency and language. A cross-border merger of the two unions was unprecedented.
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from
Glenn W. Rowe,
Pankaj Shandilya
Source: Ivey Publishing
27 pages.
Publication Date: Jun 23,, 2005. Prod #: 904M76-PDF-ENG
Arla and MD Foods – The Merger Decision (A) HBR case solution