Irish biscuit maker Jacob Fruitfield is in talks with Valeo Foods, the Irish food manufacturer, about a merger that would create an Irish foods business with turnover of €300 million.

Talks between the two companies have been going on for several months and are now understood to be close to completion, reported The Sunday Business Post.

The deal is expected to be structured as a takeover of Jacob Fruitfield by Valeo, with Jacob Fruitfield's shareholders taking some payment but also remaining as shareholders in the enlarged company.