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Scandinavian dairy group Arla Foods plans to merge with co-operatives in Germany, Britain

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COPENHAGEN - Scandinavian dairy group Arla Foods says it plans to merge with milk co-operatives in Germany and Britain.

Arla Foods Chief Executive Peder Tuborgh says a merger would "strengthen Arla Foods' position as one of Europe's leading dairy companies."

Arla Foods, which is already one of Europe's largest dairy companies, says the merger would make it the biggest dairy in Britain and the third-biggest in Germany.

The Copenhagen-based company said Tuesday that a merger with Germany's Milch-Union Hocheifel and Britain's Milk Link needs approval from their members, about 12,300 dairy farmers in Denmark, Sweden, Germany, Belgium, Luxembourg and Britain. A decision is set for June 26.

A merger would also be subject to approval by the European Union.

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