Kerry Group Sells Kerry Dairy Ireland to Kerry Co-op for €500m”>Kerry Co-op shareholders Overwhelmingly Approve Historic Dairy Deal
Killarney, Ireland – In a landmark decision, over 82% of eligible Kerry Co-op shareholders have voted in favor of a €500 million deal to acquire a majority stake in Kerry Group’s dairy division.The vote, described by Kerry Group founder Denis Brosnan as “the deal of the century,” took place at the Gleneagle INEC in Killarney, drawing long lines of eager participants.
The deal will see Kerry Co-op acquire 70% of Kerry Dairy Ireland by the end of January, with the remaining 30% to be acquired by 2035. This strategic move will considerably increase the co-op’s control over its dairy operations and solidify its position in the industry.
“This is a ground-breaking and historic decision,” said James Tangney, Chair of Kerry Co-op.”It represents a major step forward for our members and the future of the dairy industry in Ireland.”
The proposed acquisition will result in approximately 85% of the co-op’s shareholding in Kerry Group being held directly by co-op members. The remaining 15% will be used to partially finance the €500 million purchase.
Kerry Group has also expressed its support for the outcome of the vote. The company’s shareholders will now vote on the proposed transaction at an unusual general meeting scheduled for this Thursday.This deal marks a significant moment for both Kerry Co-op and Kerry Group, possibly reshaping the landscape of the Irish dairy industry.
Kerry Co-op’s Dairy Deal: A New Era for Irish Dairy?
We sat down with Dr. Aoife O’Connell, a leading agricultural economist specializing in dairy industry trends, to discuss the implications of Kerry Co-op’s historic acquisition of a majority stake in Kerry Group’s dairy division.
News Direct 3: dr. O’Connell, over 82% of Kerry Co-op shareholders voted in favor of this €500 million deal. What are your initial thoughts on this overwhelming approval?
Dr.O’Connell: This is undoubtedly a notable growth for the Irish dairy sector. The resounding approval demonstrates a clear desire amongst Kerry Co-op members to take greater control over their dairy operations and potentially increase their influence within the market.
News Direct 3: How might this acquisition reshape the Irish dairy landscape?
Dr. O’Connell: The deal concentrates a considerable portion of dairy production and processing power within the Kerry Co-op.this could lead to increased bargaining power for farmers, potentially influencing milk prices and industry practices. It also presents an opportunity for Kerry Co-op to invest in innovation and technological advancements tailored specifically to their members’ needs.
News Direct 3: What challenges might Kerry Co-op face as they integrate this large acquisition?
Dr. O’Connell: Managing the transition will be complex. Integrating two large organizations with potentially different operational cultures, streamlining processes, and ensuring a smooth flow of milk and dairy products will require careful planning and execution.
News Direct 3: Looking ahead, what does this deal signify for the future of the Irish dairy industry as a whole?
Dr. O’Connell: This move signals a shift towards greater farmer ownership and control within the Irish dairy sector. It remains to be seen how other co-operatives will respond, but this could potentially pave the way for a new era of collaboration and farmer-driven innovation within the industry.
