Monaghan Mushrooms and Carbury Mushrooms are close to signing a merger deal that would create the country's largest mushroom producer, with annual sales of about €150m.
Talks between the two groups are said to be at an advanced stage. It is expected that any merger agreement will include rationalisation of the businesses, including possible job cuts.
Media reports suggest that the companies have been facing difficult trading conditions recently due to pricing pressure by UK grocery chains.
