Lincolnshire firm QV Foods has confirmed it is in talks with MBM Produce about a takeover of its fresh potato business.

Responding to industry rumours, QV director Simon Martin, said the two companies had signed heads of agreement, subject to due diligence, and a team from QV would be working at the March site over the next few days to complete the process.

“The MBM fresh potato business supplies food service, retail and wholesale customers, and is a good fit with the QV business,” he said.

“The facilities and team at March will enable further expansion of the QV business from the site, and will resolve the constraints which recent growth has highlighted at the Holbeach site.”