Background The parties to the transaction, i.e. Arla Foods amba ("Arla Foods") and Milko ekonomisk förening ("Milko") are two independent producers and suppliers of dairy products to Swedish customers. Both parties are organised as farmer cooperatives which collect raw milk from farmers for production and distribution of finished dairy products to the retail sector, the food service sector and to industrial customers. Arla Foods sought to justify the transaction on the basis that it needed further access to raw milk and that the merger would lead to important synergies. Milko submitted that the cooperative was no longer able to make any profits and that there
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The Swedish Competition Authority clears in second phase a merger in the dairy market in a case raising failing firm issues (Arla Foods / Milko)
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