Reaction to Kerry’s bid for co-op

THERE has been a mixed reaction to Kerry Group’s plan to acquire Newmarket Co-op for €33m.

Newmarket has one of the largest, modern cheese manufacturing facilities, which would give Kerry added manufacturing scale ahead of the liberalisation of milk quotas, but the move has disappointed investors who would prefer to see acquisitions in the ingredients side.

Goodbody Stockbrokers recently said Kerry needs ingredient acquisitions if is to trade on 15 times earnings per share, like its peers.