COPENHAGEN, April 13, 2026 — Danish dairy group Arla Foods has abandoned its proposed acquisition of Them Andelsmejeri after competition authorities raised concerns that the deal could harm competition in several cheese markets.
Following Arla’s withdrawal of its merger notification, the Danish Competition and Consumer Authority has halted its review of the transaction shortly before the deadline for a final decision.
According to the authority, its investigation indicated that the merger could reduce competition and lead to higher prices for semi-hard and hard cheeses, which account for roughly half of cheese consumption in Denmark.
Concerns in Danish cheese markets
Christian Schultz said the authority had identified potential competition concerns across several markets affected by the transaction.
“Our investigations suggested that a merger between Arla and Them Andelsmejeri could harm competition, with a risk of higher prices for semi-hard and hard cheeses,” Schultz said. Cheese represents the most valuable category of dairy products in Denmark, accounting for around 5% of total household food spending, he added.
The authority found particular concerns in markets for Danbo and Danbo-type cheeses, which are widely consumed as breakfast and sandwich products in Denmark. These cheeses make up the majority of sales in the country’s semi-hard cheese segment and include brands such as Them’s “Fætter Kras” and “Them Guld” and Arla’s “Riberhus” and “Klovborg”.
Strong market position
The competition authority said the merger would have affected several markets within the Danish dairy sector, including the sale of semi-hard cheese, hard cheese, grated cheese, bulk organic cream, raw milk and whey inputs.
In several of these markets, Arla already holds a strong position that would have been further strengthened by the transaction, while Them Andelsmejeri was considered one of the few close competitors.
The investigation also highlighted Arla’s significant access to raw milk, the key input for cheese production in Denmark.
No remedies offered
The merger had been discussed several times by the Danish Competition Council, which had communicated its concerns to the parties during the review.
However, the companies did not propose remedies capable of addressing the authority’s concerns and ultimately decided to abandon the deal. As a result, the authority has closed the case without issuing a formal decision.
Arla, headquartered in Denmark, is an international dairy cooperative producing products including milk, yoghurt, cream and cheese, while Them Andelsmejeri primarily focuses on the production and sale of semi-hard and hard cheeses in Denmark.
Source: https://kfst.dk/pressemeddelelser/kfst/2026/20260413-arla-opgiver-at-overtage-them-andelsmejeri
