Issues in cross-border mergers between agricultural co-operatives

Jerker Nilsson and Ole Øhlenschlæger Madsen

A merger between co-operatives involves two mutually dependent merger processes – one concerning the co-operative business firms and the other concerning the co-operative societies, ie, the ownership organisations. If the merger involves co-operatives in different countries, each with its own institutional structure and legal framework, the merger between the co-operative societies is likely to be especially difficult. The driving force behind a merger is the top management teams, and these persons have weak connections to the co-operative societies and limited knowledge about the social networks within the memberships. Hence cross-border mergers between agricultural co-operatives are extremely challenging.