The boards of Arrabawn Co-operative Society Limited (Arrabawn) and Tipperary Co-operative Creamery Limited (Tipperary) have today (Thursday, October 17) reached agreement on the merger of the co-operative societies.

The boards met separately in Nenagh and Tipperary to discuss the proposed amalgamation following the completion of thorough due diligence by independent experts on both sides.

As a result of the unanimous decision by the boards to amalgamate the co-operative societies, the recommendation to merge will now be put to the respective shareholders of both co-operatives at Special General Meetings to be held on Thursday, November 7, next. The merger is also subject to regulatory approval.

The announcement of the unanimous agreement by the boards to merge was made jointly by the chairperson of Arrabawn, Edward Carr and, the chairperson of Tipperary, William Ryan.

The co-ops, in early September, entered exclusive discussions to combine their operations to create a stronger entity within the Irish dairy industry.

The new merged co-op will be called Arrabawn Tipperary Co-operative Society Limited and will be a dairy and agri-trading co-operative, owned and controlled by over 4,800 members, with more than 1,400 milk suppliers supplying almost 750 million litres of milk annually.

According to a joint statement from the co-ops: "This will position the new co-op as one of the largest dairy co-operative processors in Ireland, with projected annual turnover exceeding €700 million."

The joint statement said: "Arrabawn and Tipperary are neighbouring societies with a similar deep heritage and shared ethos, values and culture committed to supporting the long-term sustainable future of their milk suppliers, agri-traders, members, employees, customers and their families, while maintaining their commitment to the sustainable development of the Irish dairy industry."

The statement added: "The merger will bring substantial benefits for the new co-op, positioning it as a strong competitor both nationally and internationally within Ireland's agricultural sector.

"Arrabawn and Tipperary have complementary product offerings, routes to market and well-invested and technically advanced manufacturing facilities that will help deliver a sustainable milk price for milk suppliers."

"Further announcements will be made as appropriate. In the meantime, both co-ops will continue to operate their businesses as usual," the statement concluded.