US group McCormick has said that it will not be going ahead with a takeover bid for Premier Foods, the group behind Mr Kipling, Ambrosia and Oxo.
In a statement, McCormick said it had "completed its due diligence review of Premier Foods" which was conducted "in an open and collaborative spirit".
But it added: "McCormick has, after careful consideration, concluded that it would not be able to propose a price that would be recommended by the board of Premier Foods, while also delivering appropriate returns for McCormick shareholders. Accordingly, McCormick has withdrawn its proposal to acquire Premier Foods."
In a statement, Premier Foods’ board said: “The board sees a strong future for an independent Premier Foods, and believes that the foundations have been laid for significant growth and shareholder value creation.
“Premier Foods has a valuable portfolio of market leading brands, extensive distribution across key retail channels, a well-invested manufacturing base and strong operational cash flows. Additionally the Company plans to accelerate its growth by executing its recently announced new strategic initiatives to leverage the Company's existing capabilities, infrastructure and brand equity so as to expand into new formats, channels and markets.”
