Glanbia, an Ireland-based food group, is in negotiations with its majority shareholder Glanbia Co-operative Society, to sell 60% stake in its Irish dairy processing business, Dairy Ingredients Ireland, through a joint venture.
According to Glanbia, it plans to reduce its stake in Dairy Ingredients Ireland, as part of its strategy to increase production capacity ahead of the abolition of EU milk quotas in 2015.
Further, the company intends to focus more on its global nutritional and cheese businesses. Dairy Ingredients Ireland is one of the leading dairy ingredients processor in Ireland and it generates annual revenues of about €700m.
The joint venture will help the co-operative's farmers to hold 60% control of Glanbia's milk-processing facilities in Co Kilkenny and Co Cavan.
Glanbia Co-op Society owns 54.6% stake in Glanbia. The talks are likely to conclude only after August this year, Reuters reported, citing the company.
