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The managing director of MD Foods of Denmark and the president of Arla of Sweden, both cooperatives, were contemplating whether their companies should merge to create Europe's largest dairy company. Arla and MD Foods wished to continue the success of their joint ventures in a much closer relationship but wondered if their owners (the milk-producing farmers in each country) would approve the merger. In addition, the two companies were different in size, organizational structure, organizational culture, monetary currency used, and language spoken. Finally, a cross-border merger of two cooperatives was unprecedented throughout the world
A team of consultants has been hired to assist with the merger.
The project aims to complete the merger in less than 12 months with minimum or no disruption to operations and customer service in both countries. The management approved $2,000,000 for the merger project.
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