The Competition Authority will launch a full inquiry into Glanbia's proposed acquisition of Wexford Creamery.

The deal, announced at the end of last year, would see Glanbia Ingredients Ireland buy 70 per cent of Wexford Creamery from farmer co-op Wexford Milk Producers.

Under the terms, Wexford Milk Producers is to receive a cash payment of €3.7 million, to fund the acquisition of a 30 per cent stake in UK processor Dairy Crest, as well as allowing for the payment of a dividend to members.

Following a preliminary investigation, the authority said it had been “unable to conclude that the acquisition will not substantially lessen competition in markets for goods or services in the state”.

It has until June 6th to make a decision on the matter.