Government announce "partial merger" between Coillte and Bord na Mona

Despite opposition from sawmillers and the Society of Irish Foresters, the government has announced a merger between Coillte and Bord na Móna. Described as a “partial merger” the decision will “maximise the levels of benefit to the State and the two companies in the medium term,”.according to Simon Coveney, Minister for Agriculture, Food and the Marine.

“I welcome the decision arising from the analysis undertaken of a beneficial merger of Coillte with Bord na Móna,” he said. “Both companies should work towards a partial merger of their businesses, focusing on the areas of overlap between the two companies.”

He claimed that a joint venture between the two companies will manage their common business activities in biomass, wind energy, shared services, and recreation and tourism. “This decision is the culmination of an in-depth analysis undertaken by NewERA, and the relevant Departments on behalf of the Government and it also included input from both companies,” he said.

“We believe this merger has the potential to seriously damage the development of Ireland’s forest industry,” said Pacelli Breathnach, president of the Society of Irish Foresters. “Coillte and Bord na Móna are engaged in fundamentally contrasting industries. “There is a real risk that Bord na Móna will exploit the forests to produce a one-dimensional low priced energy product to fuel large energy-inefficient power plants when the peat supply is exhausted,” he maintained.

“Coillte fully supports the Government decision to establish this new joint venture focused on specific areas of overlap between the respective companies,” said a Coillte spokesperson. “Coillte believes that the decision represents a practical approach to delivering additional value for the State as shareholder.”

Minister Coveney said the decision "allows Coillte to focus on its core activities in forestry and operating its board mills while allowing the company to harness those areas of synergy it has with Bord na Móna".

Pacelli Breathnach disagreed with the Minister’s analysis which he said ignores the views of the wider Irish forest industry. “Coillte, together with private growers and the wider forest industry, can create the economies of scale required to build a viable stand alone world-class forestry and forest products industry in Ireland which will provide sustainable employment in rural Ireland,” he said.