Merger of Cork and Clonmel credit unions shelved
Last month, it emerged the two credit unions were in talks with regard to a “transfer of engagements” whereby Charleville Credit Union (CU), with 12,100 members, would be subsumed into Clonmel CU, which has more than 26,000 members.
However, in a joint statement by Paul Davey, chief executive of Clonmel CU, and Annette Kiely, chief executive of Charleville CU, it was announced that a decision had been made to halt proceedings.
“Clonmel CU and Charleville CU entered into exploratory talks in late 2016,” read the statement.
“These discussions were subject to a confidentiality agreement. Both boards were confident that a combined entity would have been in the best interest of all our members.
“At this stage, a comprehensive due diligence review has now been completed.
“However, the two CUs did not reach agreement on the finer details of a post merged entity and have now made the decision not to proceed with the proposed transfer of engagement.”
A transfer of engagement is a voluntary process whereby all assets, liabilities, and undertakings of one or more credit unions are transferred to another.
A transfer does not necessarily mean the credit union that is taken over ceases operating.
Mr Davey told the Irish Examiner that, in spite of a “good working relationship” between Clonmel and Charleville an agreement could not be reached.
He said previous talks with other credit unions about possible transfers of engagement also failed to materialised.
“Despite the good working relationship that had built up during the period of discussion a final agreement suitable to both credit unions could not be arrived at.
“Clonmel CU had previously entered into discussion with other credit unions always with a confidentiality agreement in place. Of all these discussions, only two reached the point where a transfer was completed,” said Mr Davey.
He also stated that media reports about the confidential and preliminary discussions did not influence the outcome of the negotiations.
“The position arrived at would have been the same with or without the media focus,” said Mr Davey.
“At all times, the best interest of both sets of members was the focus of each of the board of directors.”
