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Ireland's Minister for Justice Jim O'Callaghan described the incident as "very worrying".
"I think it evidences the fact that there is an ongoing threat in respect of dissident republican activity," he said.
"I suppose what I'm encouraged about is that the gardaí were able to apprehend the suspect.
"The device has been defused. I want to commend the gardaí for the work they did in ensuring that this didn't become a real threat to the public."
O'Callaghan said it was "obvious" that "a very serious criminal act" would have occurred if police had not intercepted the suspects.
Northern Ireland Secretary Sir Chris Bryant thanked gardaí for their "quick, decisive action".
"Intercepting a dangerous device like this undoubtedly saved lives and kept communities safe on both sides of the border," he said.
"Strong cross-border security cooperation remains as vital as ever."
Police Service of Northern Ireland (PSNI) Assistant Chief Constable Davy Beck said he welcomed the "significant seizure and the arrests" made by gardaí, which he said the PSNI worked with "very closely on a daily basis".
"This underlines our joint commitment to address the threat posed by violent dissident republican groups and keep communities safe," Beck said.
"We will continue to liaise closely with An Garda Síochána in relation to their investigation, and provide any support as required," he said.
Northern Ireland's First Minister Michelle O'Neill posted on X that the bomb "[serves] only a wreckers' agenda".
"Those responsible have no support and no vision for our island and our communities," she wrote.
Democratic Unionist Party leader Gavin Robinson said the incident "raises serious questions" about how the Irish government was "assessing the threat posed by dissident republican terrorism and whether the response is keeping pace with the danger".
Northern Ireland's Justice Minister Naomi Long "unequivocally" condemned those responsible for the bomb and said there could be no justification for actions designed to endanger lives.
Social Democratic and Labour Party (SDLP) MP Colum Eastwood said the incident would "bring back dark memories of our past for many".
"The SDLP has always been clear that violence of this nature is futile and achieves nothing except harming communities and tearing families apart," he said.
