The proposed acquisition of joint control of Kerry Dairy Holdings (Ireland) Limited by Kerry Co-Operative Creameries Limited and Kerry plc has been approved by the Competition and Consumer Protection Commission (CCPC).
The CCPC protects the interests of consumers and it has the power to block mergers and acquisitions where it finds that the deal would lead to a substantial lessening of competition.
The commission has formed the view that the proposed transaction will not substantially lessen competition in any market for goods or services in the state.
The approval allows the deal to go ahead, under the total expected price of €500 million.
Under the proposed sale, Kerry Co-op will initially acquire a 70% interest in Kerry Dairy Ireland for €350 million, while Kerry Group will retain a 30% interest.
The co-op will then have a call option to acquire the final 30% stake at any time from completion of the initial acquisition until July 31, 2030.
CCPC
The CCPC will publish its reasons for determination in no later than 60 working days after the date of the determination yesterday (Thursday, November 27).
The CCPC noted that Kerry Co-Operative Creameries Limited is an agricultural society whose members are active in the supply of milk.
Kerry PLC is a public limited company headquartered in Ireland, where it is structured into two operating segment, including Taste and Nutrition and Kerry Dairy Holdings.
Kerry Dairy Holdings (Ireland) Limited is active in milk processing, dairy and nutritional technology advancement and product innovation. It provides Irish dairy ingredients and consumer products
The co-op currently holds an 11% shareholding in Kerry Group with a value of around €1.7 billion.
The deal would require a share exchange and an associated redemption process whereby the co-op shares acquired by Kerry Group plc will be redeemed and the co-op will cease to be a shareholder in Kerry Group.