Agri-business group Origin Enterprises is to combine its fishmeal and fish oil operations with specialist fisheries company Austevoll Seafood.
Origin employs 112 people in its United Fish Industries (UFI) unit, 35 of whom are based in the fishing port of Killybegs in Co Donegal. UFI is the third largest fishmeal and fish oil manufacturer.
The deal will see Origin transfer its interest to UFI to Austevoll, which is the largest producer in the sector, for a cash contribution of €16 million in return for a 50/50 shareholding in the combined business.
A spokesman for Origin said there were "no implications" for UFI's Irish staff following the agreement.