FOOD GIANT Kerry and Dairygold spin-off Reox have re-engaged in talks on the sale of Reox's consumer food brands.

Kerry emerged some time ago as preferred bidder for the Reox portfolio, but talks between the two companies reached stalemate earlier this month.

At issue was the pricing of the proposed deal.

The Reox portfolio includes some of the best-known Irish food brands, among them the cheese labels Mitchelstown and Calvita, bacon and sausage label Galtee, and bacon and ham label Shaws.

Reox also makes Dairygold, a leading brand in the dairy-spread category.

Valuations in the range of €160 million to €200 million have been mooted for the Reox portfolio, although it is believed that bids did not reach the top end of that scale.

It is unclear which side moved first to resolve the "stand-off", but the talks are likely to proceed in the coming days.

The sale process has been under way since October, when Ion Equity made an unsolicited approach to Reox.

Kerry worked to resolve potential competition issues that might arise in the event of a takeover.

The group is believed to have identified considerable synergies that could be achieved if it takes control of the portfolio, but some of its own brands compete with the Reox label.