Discussions between Kerry Group and Kerry Co-op about a possible joint venture deal have been suspended.
The development was confirmed in a statement from Kerry Group plc this evening.
Kerry Group announced in February that it was conducting a strategic review of its dairy-related businesses in Ireland and the UK.
Discussions had been taking place between Kerry Group and Kerry Co-op in recent months in relation to potential joint venture whereby the Co-op would buy a 60% stake in Kerry Group's dairy business.
A widely-circulated document claimed the agreement would include Kerry Co-op buying the entire dairy business within three to five years, which led to concern among some shareholders and milk suppliers.
In the statement this evening, Kerry Group confirmed that discussions with Kerry Co-op in relation to a potential transaction have been suspended.
The company added while the strategic review continues, there is no certainty that this will lead to a transaction.
Kerry Group says a further update on the strategic review process will be communicated later this year.
Meanwhile, in a statement, the Board of Kerry Co-Operative Creameries Limited notes the decision of Kerry Group plc to suspend discussions relating to a potential transaction concerning the Group’s Dairy business.
With the prime focus of protecting the interests of, and delivering for all its stakeholders, the Co-Op, over the past 18 months, engaged in a thoroughly professional approach to give this potential opportunity every possibility of success. We believe a fair valuation was put on the proposed transaction.
The Board of Kerry Co-Op will remain open to evaluating opportunities.
