A group of investors led by Icelandic group Baugur has confirmed a £326 million cash takeover of the UK’s Big Food Group, which includes Iceland.

However, the group will sell on the Iceland supermarket chain to a separate entity owned by investors including Icelandic lender Kaupthing Bank.

Big Food Group's remaining assets would include Booker cash-and-carry outlets and Woodward Foodservice.

Baugur, Iceland’s biggest retailer, is fast becoming a major force on the UK high streets. Recent acquisitions by the Icelandic concern include jewellery chain Goldsmiths and fashion chains Karen Millen and Mk One. Baugur also has significant stakes in department store group House of Fraser and supermarket chain Somerfield.

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