Discussions in regard to a possible merger are ongoing between two of Ireland’s longest established Co-ops, a joint statement said today.
The respective Chief Executives of Ballyrashane, Nigel Kemps and Town of Monaghan’s Gabriel D’Arcy welcomed the fact the proposed merger had been received positively by producers, customers and staff.The two Chief Executives said their Boards – who announced their intention to enter exploratory merger talks a month ago - were currently taking legal and financial advice to ensure their joint aspiration of delivering a structure capable of bringing value for shareholders, producers, employees and customers would be delivered.
“Clearly this is a complex exercise and whilst there is a considerable way to go we are pleased with the progress made to-date. We envisage this first phase of discussions to conclude and to be considered by our respective boards over the coming weeks. From there we can move on to resolving other key issues. It’s important to emphasise that while good progress has been made to-date we are a long way from concluding the process which will ultimately be subject to approval by our respective shareholders,” the Chief Executives said today.
Ballyrashane and Town of Monaghan have reiterated their view that a new merged entity would create a powerful new force in the Ulster airy sector with the scale and ambition to win in the increasingly challenging and competitive marketplace.
They say their complementary geography and production facilities, technologies, customer listings together with the combined balance sheet strength offers the unique opportunity to create a true leader in the Ulster dairy food sector focused on innovation and competitiveness.
The Chief Executives added: “This potential for clear and endurable market leadership will ensure that the new merged entity will continue to make competitive and sustainable returns to our members, the dairy farmers of Ulster.
“Both Co-Operatives have similar ethos values and culture and we have entered these discussions with the best interests of our suppliers and shareholders to the fore while also being cognisant of the benefits to our staff and customers alike.”