Bord na Móna Recycling is to be acquired by KAES Recycling Holdings Ltd, a part of the KWD Group, after the deal was cleared by the competition authority.
Bord na Móna had been attempting to sell the waste management business since early 2024.
Last December, sources indicated a deal was likely to be worth over €55 million, although no details of the final sale have been released.
On Thursday, the Competition and Consumer Protection Commission (CCPC) said it had cleared the deal, subject to various legally binding commitments.
The proposed acquisition was notified in early February and the CCPC undertook a preliminary investigation into how it might affect levels of competition between providers of waste collection services.
It said it had particular concerns about how levels of competition in certain parts of Leinster and Munster would be affected. KAES subsequently agreed to divest a number of domestic, commercial and industrial customers in those areas.
The CCPC said it had approved similar remedies in previous waste mergers such as Thorntons/City Bin and Pandagreen/Exomex.
“The commitments given by KAES Recycling also include obligations that will ensure that transferring customers will be supported throughout the process and that they will be fully informed of their rights and options,” it said in a statement.
“Notwithstanding this merger decision, the CCPC continues to be of the view that the household waste collection market in Ireland is not delivering strong outcomes for consumers.”
It said structural changes were required in the market and has pushed for the establishment of an economic regulator for household waste collection.
KWD in Co Kerry had been flagged in reports last year as the preferred bidder although other companies had also been named as potential buyers.
