The chair of Kerry Co-op says reaction has been mainly positive since details of its deal to buy Kerry Dairy Ireland were announced.
The €500 million deal will involve Kerry Co-op taking over the dairy business of Kerry Group, in exchange for its 11% shareholding in Kerry Group plc.
The two-phase transaction will only go ahead if approved by the majority of the co-op’s shareholders at a special general meeting in December.
The deal will also bring an end to the long-running milk price dispute and related claims and arbitration between milk suppliers and Kerry Creameries Ltd, a subsidiary of Kerry Group, with a €50 million fund from Kerry Group.
Chair of Kerry Co-op James Tangney says this €50 million pot represents an 80% win for these suppliers, and this is the best deal possible to the arbitration.
