Kerry Group is in negotiations to sell its French fruit ingredients business to Industri Kapital, a Swedish private equity company.

Kerry Fruit Ingredients, owned by Kerry since 1996 is thought to account for around a third of the European market for candied fruit used in cake toppings, yoghurts and other products.

Kerry have not confirmed that discussions are under way, but the venture is believed to generate sales of £71million-£143m.

Industri Kapital has a diversified portfolio but food production accounts for just eight per cent of its assets.