Arla foods confims advanced takeover talks

Arla Foods UK has confirmed it is in advanced talks for its parent company, Danish co-operative Arla Foods Amba, to make an offer for the remaining shares it does not own.

Arla Foods Amba already owns 51% of Arla Foods UK, the country’s largest supplier of milk to supermarkets.

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

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.

But talks seem to be back on the table, as media speculation over the weekend claimed a £430m takeover deal would be finalised this week.

In a statement Arla Foods UK, the company behind Cravendale, Lurpak and Anchor butter, confirmed discussions which could lead to a cash offer of 71p a share were continuing.

But there was no certainty an offer would be made, or on what terms, it said.

Shares in Arla Food UK were up 4.50p, or 7% this morning (Monday 15 January) following confirmation of talks.

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