Marking the end of a long-standing tug-of-war between Kerry Group and the co-op, the return of Kerry Dairy Ireland to farmers has been hailed as a “fundamental win” for milk suppliers across Munster, clearing the path for a new and more equal relationship between the two entities.

The historic deal, which was supported by 82% of eligible members last month, will also see a major economic injection in the Kerry and wider Munster region, delivering €1.4bn in value directly to the almost 12,000 members of the Kerry Co-op.

Commenting on the completion, Edmond Scanlon, chief executive officer of Kerry Group said: "Today marks a significant step in Kerry's history, becoming a pure play global business to business taste and nutrition company, with sustainable nutrition at its core, while also supporting our financial objectives of continued market outperformance, strong margin progression, and delivering greater returns for our shareholders. 

"I would like to recognise the Kerry Dairy Ireland employees for their contribution to Kerry over the years and wish them the very best in the future.”

Under the agreement, the co-op said it would sell 15%of its stake in Kerry Group, in which it owned about 11%, and distribute the remainder of its holding in Kerry Group among its own members. 

The co-op would also take a 70% stake in Kerry Dairy Ireland.

Last year, Kerry Dairy Ireland delivered sales of €1.3bn, exporting to 58 countries. 

The company also employs around 1,500 staff, who will transfer with the business now that the deal is approved.

The business has a wide portfolio of dairy food brands, including Cheestrings, Dairygold, EasiSingles, LowLow, Kerrymaid, and Charleville.

The company processes more than 1.1bn litres of milk annually, from 2,740 family farms in Munster.

As a result of Phase One's completion, the company’s issued share capital was reduced by almost 2.9m shares, to a total of 166m Ordinary Shares.

Therefore, the total number of voting rights in the Company is 166m, Kerry Group said.