LacPatrick and Lakeland enter exclusive amalgamation talks
Lakeland Dairies has emerged as front runner to buy rival dairy LacPatrick, after the two sides entered 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, they said in a joint statement.
Any agreement will remain subject to shareholder approval – by both cooperative – as well as regulatory clearance.
LacPatrick is one of the biggest dairy co-ops in the Border region is in talks with as many as three potential merger partners.
Lakeland had emerged early as the most likely merger partner, although Aurivo, Dale Farm and Glanbia had all expressed an interest.
Co-op members will have the ultimate say, and any merger would need backing from 75pc of LacPatrick members.
LacPatrick was formed from the merger of the old Town of Monaghan Dairy in the Republic and Ballyrashane Diary in Co Tyrone. It processes more than 600 million litres of milk from more than 1,000 farmers, roughly half on each side of the Border.
More to follow.