The Competition Authority has given te go-ahead for the purchase by Connacht Gold of Donegal Creameries’ milk and retail stores.
They say that they had taken account of the views of customers of both and the Irish Farmers Association about the competitive impact of the acquisition on farmers in the northwest.
Speaking at the time of the acquisition at the end of last October, PJ McMonagle, Chairman of the Donegal branch of the IFA welcomed the purchase and told the Donegal Democrat that the ‘Farmers Journal’ had indicated that NCF had been paying milk suppliers higher prices than Donegal Creameries for a number of years and this could only be a good thing. “The two co-ops joining together is also the way forward and will give greater market access to all. It can only be positive,” he told the paper.
Connacht will pay Donegal Creameries €13.5m, and further contingent earn-out payments of up to €7.4m dependent on the operating and financial performance of the Milk Business in 2012.
Connacht, headquartered in Tubbercurry, Sligo, said the acquisition will include Donegal’s 120m litres milk pool, liquid milk processing facility at Killygordon and 11 retail stores - nine in Donegal and two in Northern Ireland.
Donegal Creameries, said they would focus on its seed potato and dairy products division, its animal feeds business and property investments.