The merger deal between Arrabawn Co-Operative Society Limited and Tipperary Co-Operative Creameries Limited has been cleared by the Competition and Consumer Protection Commission.
The new co-operative society will be called Arrabawn Tipperary Co-Operative Society Limited (Arrabawn Tipperary) and the merger is due to be complete by February 28 this year.
The neighbouring co-ops had announced the merger talks in September.
The new merged co-op will have 1,400 milk suppliers, supplying almost 750 million litres of milk annually.
This will position it as one of the largest dairy co-operative processors in Ireland, with projected annual turnover of over €700m.
