Arla Foods UK has at last agreed to a £435m takeover by its Scandinavian parent company, Arla Foods Amba.

Arla Foods, the UK’s largest supplier of milk to supermarkets, recommended shareholders should accept the offer of 71p a share.

The Scandinavian firm already owns 51% of Arla Foods UK, the company behind Cravendale, Lurpak and Anchor Butter.

 The takeover will see Arla Foods Amba secure the remaining 49% of the UK company.

Peter Tuborgh, Arla Amba’s chief executive, said outright ownership of Arla Foods UK would allow it to strengthen its relationship with UK dairy farmers.

The two sides disclosed they had begun discussions about a possible takeover in October last year.

Negotiations stalled at the end of the year as the companies reportedly failed to agree over how to fill a £143m deficit in Arla Food UK’s pension fund.