Arla Foods is merging with Milk Link to create a farmer-owned dairy processing businesses with combined turnover in excess of £2bn. The merged business retains the name Arla Foods UK Plc and will continue to invest and grow in the UK dairy market. .
The combined group will process over three billion litres of milk every year and have a turnover of more than £2bn. Arla uses the dairy brands Cravendale, Lurpak and Anchor in the UK.
Milk Link, which is based in Bristol, has a joint venture with Arla in Wiltshire and the companies share facilities at Lockerbie. Arla Foods is a co-operative owned by Danish, Swedish and German dairy farmers, operating in 13 countries and employing 17,000 people.
It is currently building one of the world's largest dairies in Buckinghamshire. The £150m development near Aston Clinton will be finished by the summer of 2013 and will employ 700 people.
Peter Lauritzen, chief executive of Arla Foods in the UK said: 'Arla has a strong record of investing in facilities and brands in the UK.
'Together we will be able to offer British retail and foodservice customers with a full range of high quality dairy products from a single, secure, source, making us an even more attractive partner for British retailers.'