Glanbia has announced that, subject to relevant shareholder approval, it has signed contracts with its majority shareholder, Glanbia Co-operative Society, to enter into a 40% (Glanbia) : 60% (Society) joint venture in respect of Dairy Ingredients Ireland.
This agreement follows the announced signing of a memorandum of understanding between the two organisations on 29 August and is a further step towards the completion of the transaction.
"At this point in our development we face clear strategic choices as we approach a post quota era.,” saidJohn Moloney, Group Managing Director of Glanbia. “The proposed new Joint Venture is based on an existing, well invested and profitable international dairy ingredients business. This creates a strong platform from which to grow milk volumes and to capture the benefits arising from increased milk production and processing, post the abolition of milk quotas.”
“The Joint Venture will ensure a continuation of strong and complementary links between the plc and the Society within a structure that better accommodates the strategic interests of Society members. It also enables Glanbia to continue its successful international growth strategy and to maximise value for all shareholders."
If approved by both Society members and Glanbia shareholders, the transaction is expected to be completed by the end of the year.