Unilever will sell several of its dry soup and sauces businesses in Europe to Campbell Soup Company for €1 billion (£787 million).

In Ireland, the businesses included in the sale are McDonnells soups, sauces, savoury rices and noodles and the Oxo brand, which are managed by Van den Bergh Foods. The deal will involve the transfer of 25 employees working in the McDonnells factory in Drogheda, Co Louth, together with the site, plant and equipment.

The businesses are being divested as a result of undertakings given to the European Commission in connection with the merger of Bestfoods' and Unilever's food interests in October 2000. The sale is conditional on approval by the European Commission Mergers Task Force.