Clonmel Credit Union has announced it is not to proceed with seeking an amalgmation with Charleville Credit Union in Co. Cork.
News of the abandonment of the controversial amalgamation negotiations was revealed in a joint statement issued this morning (Tuesday) by Paul Davey, CEO of Clonmel Credit Union and Annette Kiely, CEO of Charleville Credit Union.
The statement said: "Clonmel Credit Union and Charleville Credit Union entered into exploratory talks in late 2016 to determine if there was a business case for a strategic alignment which would benefit members of both credit unions, and lead to a stronger combined entity.
"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 had now been completed. However the two credit unions 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 engagements."
Mr Davey and Ms Kiely said it was unfortunate that while the detailed due diligence was taking place, a significant amount of information, much of which was inaccurate, found its way into the public domain.
"Subsequent media coverage of the discussions, based on this information, caused an unwarranted level of concern amongst credit union members,” they said. “ Throughout the process, all matters concerning the transfer of engagements were considered by the boards in the best interest of all our members.
"As independent and stand-alone credit unions, and in the spirit of co-operation amongst credit unions, Charleville and Clonmel will continue to work together to share expertise and learnings for the betterment of all our members. Both credit unions wish each other well for the future," the joint statement concluded.
Reports on this story in recent weeks