The Danish competition authority has confirmed that Arla Foods amba has decided to abandon its proposed acquisition of Them Andelsmejeri A.m.b.a. This decision comes after extensive investigations revealed that the merger could significantly harm competition, particularly in the market for firm and hard cheeses, which are crucial to Danish consumers.

Christian Schultz, Chairman of the Competition Council, highlighted that the merger posed risks of higher prices for cheese, a staple in Danish diets, accounting for about five percent of total food expenses. The authority's investigations indicated competitive concerns across several markets, especially regarding Danbo cheeses, which are widely consumed in Denmark.

The DCCA had engaged in thorough market investigations, consulting customers and competitors, and conducting economic analyses. The findings showed that Arla already holds a strong market position, which would be further enhanced by the merger, particularly in the sales of Danbo cheese, Denmark's national cheese.

As a result of these concerns and the lack of proposed solutions from the parties involved, Arla has chosen to withdraw its notification to the competition authorities, leading to the discontinuation of the DCCA's work on the case.