Glanbia 'in talks' for Dawn deal
Kilkenny-based Glanbia is believed to be in talks to buy the Limerick-based Dawn liquid milk business from Kerry Group. The deal, which would be a relatively small one, would see Glanbia further consolidating its grip on the liquid milk business in Ireland.
While neither Kerry nor Glanbia would comment on the potential tie-up, speculation suggested that such a deal could be worth around €10m.
The deal, if it went through, appeared to make sense for both sides, said Liam Igoe of Goodbody Stockbrokers.
"There are too many small players in the liquid milk market, so consolidation has been on the cards for some time," he said.
"Kerry is much smaller than Glanbia in terms of the liquid milk business and has very limited operations in Kerry and the north-west so, on the face of it, this deal would make sense for both sides," he added.
Kerry has held Dawn since acquiring Golden Vale back in 2001. It sold the Dawn Galway liquid milk business to Arrabawn last March.
By late afternoon yesterday, Glanbia was down just over 1pc at €3.32. Kerry Group was up marginally at €25.60.