The proposal for Glanbia Co-op to buy 60% of the consumer foods and agribusiness from Glanbia plc has moved a step closer as both partners signed binding legal agreements to create the Glanbia Ireland joint venture.

Glanbia Co-op shareholders will now be asked to vote on the proposal on 18 May at a special general meeting (SGM) in Punchestown. The proposed transaction will also be subject to approval by Glanbia plc’s shareholders via an extraordinary general meeting (EGM) on 22 May. If all of the proposals are approved, including the €100m spin-out, the co-op would see its ownership in the plc fall from 36.5% to 31.5%.

This comes as Glanbia announced group revenues increased 8% in the first three months of 2017.

The group’s ingredients business was the main driver of growth along with increased prices reflecting improved dairy markets.

Volumes fell 3.1% in its performance nutrition business where it acknowledged challenges in the US market. It expects margins to be in the mid-teen range, albeit below 2016 levels.

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