Food group Glanbia is in discussions with its main shareholder Glanbia co-op about selling its Irish dairy business in what could be one of the biggest corporate deals in Ireland since the recession began.

Glanbia’s Irish business generates more than half of its 1.8 billion euro revenue. Glanbia is valued at more than three quarters of a billion euro. Any bid from the co-op is expected to be comprised of cash and shares.