Irish food giant Greencore has announced that discussions about a possible takeover have ended. In October, the sandwich and ready meal supplier said it had been approached about a potential takeover. However, rising worldwide debt and uncertainty in the equity markets is understood to have brought about the end of the discussions; the group’s share price fell by drop by 10 per cent following the announcement.
"Given the board's unanimous view on the strong underlying value of Greencore and the current dislocation in global equity and debt capital markets, both parties have agreed to end discussions," said the company in a statement. Greencore supplies prepared meals for the Weight Watchers brand; it also supplies sandwiches to supermarkets, garages and airlines. In July of this year, the company said the British consumer food market was "challenging and volatile."
Analysts say prepared food companies are being squeezed by the consolidated retail sector. (6 Dec)
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