Dublin, Jan. 13 - Irish food group Kerry is set to buy the food division of Reox Holdings Plc for around 170 million euros ($251.2 million), the Sunday Times newspaper reported.
Kerry and Reox were not immediately available for comment.
The Sunday Times, without citing any sources, reported that Kerry, whose brands include Wall's sausages, Homepride flour and Cheesestrings snacks, had increased its price to knock out a rival bid by a private equity firm.
It said a deal could be reached as early as next week, adding that any sale would still need regulatory approval.
Reox holdings was created in 2006 by Ireland's Dairygold Co-Operative Society Ltd after it spun off its consumer food, home improvement and property divisions.
Dairygold controls a 25 percent stake in Reox, with 75 percent held by around 7,500 shareholders. The co-op had spun off the majority of Reox shares in 2006 to its members.
Reox's food division Breeo operates in Ireland, the UK, Holland, Germany and the United States. Its stable of brands include Dairygold spreads and Shaws meats.
Reox is a public company, although its shares are not listed and are traded via brokers.
Kerry has sold off underperforming units which has helped improve margins as it contends with rising raw material prices.