Three members of the public were allegedly taken hostage when two men boarded the minibus at Dublin Airport before driving on the M1 towards Northern Ireland.
The passengers were not harmed physically and were let off the bus near Julianstown, Co. Meath.
The hijacked vehicle crossed the border near Dundalk, Co. Louth.
Thousands expected to take part in 'Derry Day' this weekend
Two new arrivals in DUP camp as UUP councillor Alan Lewis defects alongside serial party-switcher Henry Reilly
Crawfordsburn Country Park: Five PSNI officers injured bringing crowd of 600 under control - two teens arrested - parents asked to know where their children are
Search for missing man ends with body found on north coast
Esmond Birnie: The protocol is not as claimed boosting growth in Northern Ireland
"Officers observed the vehicle in Crossmaglen Square, and upon police entering the car park the transit van collided with the police vehicle causing damage to the front of the car," confirmed the PSNI.
"The transit van then made off from the area and re-crossed the border.
"The PSNI officers were not injured during the incident."
Two men in their 30 have been arrested and are currently detained under Section 4 of the Criminal Justice Act, 1984 at Carrickmacross Garda Station.