Lakelands and LacPatrick receive approval from competition authorities for merger
Lakeland Dairies and LacPatrick co-operatives have jointly received regulatory approval, for the merger of both societies, from the Competition and Markets Authority (UK) and from the Competition and Consumer Protection Commission (Ireland).
The Competition and Merger Authority (CMA) in the UK and the Competition and Consumer
Protection Commission (CCPC) in Ireland have ruled that the merger can now be completed.
Both authorities determined and ruled that competition would not be adversely affected as a result of the merger.
The regulatory authorities’ clearance was the last significant hurdle for the merger to go ahead.
In October 2018, the Lakeland and LacPatrick shareholders voted 97pc and 96opc respectively in favour of forming one of the largest dairy processors in Europe.
The new Society – to be called Lakeland Dairies Co-Operative Society Limited – will be the second largest dairy processor on the island of Ireland with a cross-border milk pool of 1.8bn litres, produced by 3,200 farms from 15 counties.
The new co-op will have a combined annual turnover in excess of €1bn, creating internationally competitive scale while ensuring efficient costs of operation.
A number of standard legal and administrative procedures will now be completed to enable the new Society to begin trading at the end of March. Until then, the two co-ops will continue to operate independently with each setting its own milk price.
Alo Duffy, Chairman of Lakeland Dairies said the merger will help create efficiencies across the orgnaiosation.
"It will enhance value and maximise available market returns for the benefit of milk producers. I express our strong appreciation to the shareholders of both societies for their confidence in this historic development which will underpin the long term sustainability of our dairy farming enterprises for the future.”
Andrew McConkey, Chairman of LacPatrick Dairies added that:
"The merger gives our farmers the necessary security to make long-term business decisions and provides stability for continuing progress in dairy farming for the next generation. With a large milk pool and well-invested dairy processing sites on both sides of the border, the new Lakeland will be a co-op of considerable scale.
"We will work in the long-term best interests of dairy farmers while serving our valued customers with even greater capability and an expanded range of high quality, value-added dairy products," he said."
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