Claire Mc Cormack and Rachel Martin
LacPatrick and Lakeland enter exclusive amalgamation talks
The boards of LacPatrick Dairies and Lakeland Dairies have agreed to enter into exclusive discussions regarding an amalgamation of the two societies.
In a statement, LacPatrick Dairies said: “Any agreement reached will be subject to shareholder approval and the relevant regulatory clearance.”
The move follows a high-level meeting between the two firms which took place earlier today.
The bidding process began following a meeting of the board of LacPatrick Dairies on Tuesday, April 17, when the firm issued a statement in which it said it was “pursuing a number of strategic options”.
The move came following uncertainty after successive milk price cuts over the spring period which left the Monaghan-based co-op behind its near neighbours.
Since then, the likes of Glanbia, Lakeland Dairies, Aurvio and Dale Farm all publicly, or privately, expressed interest in partnering with LacPatrick.
A deal would be welcome relief to LacPatrick’s 1,000 farming families. However, it’s understood there is still much ground to be covered.
It’s been a turbulent few weeks for the processor with major Irish processor Glanbia announcing it had pulled out of talks last week.
The merger talks come less than a year after the firm opened its €33 million (£30 million) 30,000ft² dairy technology centre in Artigarvan, Co. Tyrone.