Food group Glanbia has signed contracts with Glanbia Co-Operative Society to create a joint venture deal for Dairy Ingredients Ireland unit.

Dairy Ingredients Ireland is the largest dairy ingredients processor in the country, and is a business unit of the Dairy Ireland division of Glanbia.

The Dairy Ingredients Ireland division, which comprises the vast bulk of Glanbia’s Irish milk-processing activities, and excludes its consumer foods and agribusiness operations, has revenues of about €700 million.

Glanbia will own 40 per cent of the Irish dairy processing business, while Glanbia Co-Op will own 60 per cent.

In August, Glanbia signed a non-binding memorandum of understanding with majority shareholder Glanbia Co-Operative Society to enter into a joint venture regarding its dairy ingredients business.

The transaction is conditional upon approval by Co-Op shareholders and a vote will be held on the deal on November 13. Glanbia will then hold an EGM in late November where its shareholders can vote on it.

In a statement, Glanbia said the joint venture was expected to be completed by the end of the year, if approved by both sets of shareholders.