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The United Kingdom's Competition and Markets Authority (CMA) announced that it was investigating the proposed merger of Lakeland Dairies (NI) and LacPatrick Dairies.
By issuing an original order of execution on Friday, November 23, the AMC imposed on Lakeland and LacPatrick restrictions on the integration, transfer of ownership or control of one or more or the other of these companies.
The two cooperatives must continue their activities separately and in the same way as before the merger.
However, the authority does not prohibit the completion of the actual transaction, provided that the restrictions are observed during the investigation.
According to industry sources, such investigations are not uncommon and the investigation should not delay the merger process.
Last October, Lakeland and LacPatrick announced that the two companies had agreed to a merger.
The shareholders of both cooperatives strongly supported the proposed agreement. Lakeland pbaded the motion with a majority of over 97%, while LacPatrick shareholders supported the merger at 96%.
The registered name of the new cooperative, subject to the approval of the Competition Watch Committee, will be Lakeland Dairies Co-Operative Society Limited.
It is understood that the current value of the action at LacPatrick Dairies will be more than tripled; while at Lakeland Dairies, shareholders are offered doubled shares.
Owned and controlled by farmers, the new cooperative will include more than 3,200 milk suppliers and a collective milk pool of about 1.8 billion liters.
This would make it the second largest milk processor of the island of Ireland.
Commenting on episode 10 of Farmland Earlier this month, Lakeland Dairies Chief Executive Officer Michael Hanley said the merger "would bring many synergies, a lot of savings, a lot of efficiency and that it should help maintain a higher milk price for farmers in Lakeland and LacPatrick. l & # 39; future. "
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