Arla, British supermarkets’ biggest milk supplier, is in talks with its main shareholder that could see a 71p per share offer for the remainder of the company, the dairy group said in a statement on Monday.
Such a deal would value Arla, which also produces Lurpak and Anchor butter, at £430m.
Arla’s major shareholder is the Swedish-Danish cooperative Arla Amba, which owns 51% of the UK group. Last year, Arla Amba abandoned merger talks with Campina, a Dutch dairy farm, citing differences in the two groups’ capital structures.