Major merger announced between two Scottish machinery rings

Two major Scottish co-operatives, Ringlink Scotland and Highland Business Services Ring, have announced plans to merge business activities, subject to votes by members.

Laurencekirk-based Ringlink Scotland is already the UK’s largest business ring with about 2,900 members.

The merger would create a combined membership of more than 4,000.

The merged business would continue to trade as Ringlink and would have an annual turnover of about £100m, covering much of east, central, and northern Scotland.

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Machinery rings often provide farmers with access to shared resources and group purchasing of inputs, such as fuel and fertiliser.

Highland Business Services, based near Inverness, has been a co-operative for more than 30 years.

Its members are due to vote on whether to go ahead with the merger later this month.

An initial vote on 24 June will need two-thirds of members voting to give approval, while a second vote on 11 July will require more than half of members to be in favour.

If approved, the merger will be formalised on 1 August, and two directors of Highland Business Services would join the Ringlink board.

Ringlink chairman James Porter said: “Both rings have worked closely together over the last few years and the proposed merger is the next logical step forward in the machinery ring concept in the north of Scotland.

“The combined ring will be able to offer a more comprehensive and efficient service, and will allow further development of the core business, along with the labour and training divisions, which are an integral part of the business.”

Anne Rae Macdonald, chairman of Highland Business Services, added that the merger would provide members with enhanced buying power and services.

Ms Macdonald said: “The plans are a significant step forward in our development and will allow both rings to pool resources while still optimising local centres, contacts and knowledge”