Waste management company Greenstar has announced it is to sell its collections, transfer and processing divisions to rival Panda.

Following completion of the deal, Panda will add 80,000 Greenstar residential customers to its existing residential customer base of 150,000.

In addition, Panda will double its number of business customers to 30,000.

It is understood Panda will continue to operate the acquired parts of the Greenstar business under the Greenstar brand.

Greenstar will retain its landfill power business, through which it manages gas emissions from Irish landfills and uses that energy to supply green energy to the national grid equivalent to serving 35,000 homes.

The deal is subject to clearance from the Competition & Consumer Protection Commission and is expected to be completed within the next three to six months.

Until its completion, both businesses will continue to run their operations as normal.

At present, Panda collections cover counties Dublin, Louth, and Meath, while Greenstar covers 11 counties - mainly across the south, south east, and the midlands.

Commenting on the sale, CEO of Greenstar Mark Burrows Smith said: "The consolidation of the waste management industry in Ireland has long been viewed as necessary and this transaction is consistent with the objectives set by the Greenstar Board.

"The Greenstar Board would like to reassure our employees, customers and other stakeholders that both the Greenstar Board and the Greenstar Management Team will be working closely with Panda to ensure a smooth transition for all concerned following completion," he added.

Panda CEO Brian McCabe said that the "joining of Panda and Greenstar will create a leading Irish owned and managed municipal and commercial waste collection, processing and recycling business in the country".