The leaders of the two main farm groups representing dairy farmers remained coy this moring about their organisaions support for Glanbia Co-op's taking full control of Glanbia Ireland.

Glanbia plc and Glanbia Co-op, today announced they have signed a non-binding memorandum of understanding for the sale of the Plc's 40pc interest in Glanbia Ireland (the Co-op) for €307m.

The Co-op intends to finance up to 50pc of the proposed deal through the sale of shares it owns in the capital of the Plc, with the balance to be funded through borrowings.

In the 2020 financial year on a 100pc basis, Glanbia Ireland generated €1.9bn in revenue and a profit after tax of €60m.

Responding to the announcement, ICMSA President, Pat McCormack, said that the association would look carefully at the proposal before coming to any decision on whether to recommend it or not.

Mr. McCormack noted Glanbia PLC’s enthusiastic and positive vision of a post purchase future where the Co-op became ‘one of Europe’s top Co-ops’ with an ‘award-winning portfolio of brands’ and greater flexibility to support members and pursue new opportunities. All of which was possible, according to Mr. McCormack, but was in no way conditional on the Co-op acquiring full ownership of Glanbia Ireland.

“Though there are obvious differences with other buy-outs and various mergers, there’s enough in common to justify our Association taking its standard attitude and that is to ask what is the long-term interests of the farmer-suppliers. That’s our starting point and our finishing point.

"With due respect to both the PLC and Glanbia Ireland, we will consider this in terms of how it affects the farmers. It’s not as simple as giving the farmers the room to decide their own milk price, we have seen over in the UK how a deceptively simple slogan like ‘Taking Bac