ST ALBANS, UK: In the wake of multiplying rumours over the past few weeks, Premier Foods and RHM have inked a deal whereby the latter will be acquired by Premier for around £1 billion ($1.98bn; €1.49bn). The resulting hybrid will become the UK's largest food producer.

The merged brand portfolio will include RHM's Mr Kipling cakes and Hovis bread range alongside such household names as Branston Pickle, Angel Delight desserts and Smash instant mashed potato.

Whoops Premier Foods chairman David Kappler: "This acquisition provides a unique opportunity to combine two of the UK's leading food companies to create the UK's largest food producer.

"There is excellent potential for Premier to enhance its top-line growth in conjunction with improved efficiency to deliver substantial value to shareholders."

Data sourced from Reuters (UK); additional content by WARC staff