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Sweden: Negotiations on Dairy Joint Venture Break Down

Source: Valio Ltd.
24/10/2006

20 October 2006 - Negotiations between three Nordic dairies to establish a joint venture in Sweden have drawn to a close in their current form. Skånemejerier and Milko were unable to reach agreement on terms regarding the establishment of a planned joint sales and marketing company. They also held different views on, for example, the valuation of their company. Valio was the Finnish party to the negotiations.

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The sales and marketing of Valio products in Sweden have been handled successfully since the early 1990s by the subsidiary Valio Sverige AB. Valio is a major player in Sweden in the lactose free products and fruit yoghurts segments. Valio is now investing in the further development of its subsidiary’s operations and market position. The goal is to strengthen Valio’s Swedish presence in accordance with its home market strategy.

Co-operation with Swedish dairies is still an option and the current agreement with Milko will continue. Milko manufactures e.g. the aromatic Greve cheese for Valio.



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