The Competition and Consumer Protection Commission (CCPC) has determined that Aurivo's proposed acquisition of Arrabawn's liquid milk sales business can proceed.
The commission imposed no conditions on the takeover, saying the move would "not substantially lessen competition" in the supply of branded and unbranded liquid milk, cream and butter products in Ireland.
The deal, which was first announced in August 2022 and expected to come in effect early this year, had been substantially delayed while the CCPC carried out a preliminary investigation from February this year, which was followed by a second investigation which began in July.
Friday's decision means Aurivo can finally complete the acquisition.
The amount being paid for the business has not been revealed by either side and the deal does not include Arrabawn's dedicated liquid milk plant in Kilconnell, Co Galway.
The co-op had previously said it was exploring alternative uses for the site "with a view to reaching a satisfactory income".
The Irish Farmers Journal has reached out to both parties for comment.