REGULATORS have rubber-stamped the merger of the Lakeland Dairies and LacPatrick co-ops in a move which creates the second largest dairy processor on the island of Ireland.
The Competition and Markets Authority (CMA) in the UK and the Competition and Consumer Protection Commission (CCPC) in the Republic have formally ruled that the merger can now be completed, saying competition would not be adversely affected as a result of the tie-up.
In October Lakeland and LacPatrick shareholders voted 97 per cent and 96 per cent 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 have cross-border milk pool of 1.8 billion litres, produced by 3,200 farms from 15 counties.
The new co-op will have a combined annual turnover in excess of €1 billion, creating internationally competitive scale while ensuring efficient costs of operation.
Alo Duffy, chairman of Lakeland Dairies, said: “The merger will help us to create efficiencies across our organisation which will enhance value and maximise available market returns for the benefit of milk producers.
"I appreciate the confidence of shareholders of both societies 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: “We look forward to the continuing future success of Lakeland Dairies as a fully integrated dairy industry player, creating efficiencies and further added value for our milk producers with enhanced global market access for our high quality dairy products.
"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.”
The new enlarged society will begin trading at the end of this month, until which the two co-ops will continue to operate independently and each set its own milk price.
