Arla Foods amba, the parent company of dairy firm Arla Foods UK, has agreed to acquire the 49% stake it does not already own in Arla Foods UK for 71p per share.

The acquisition price values the entire existing issued share capital of Arla Foods UK at £434.5m and the shares not owned by Arla Foods amba at £212.9m.

“Outright ownership will ensure that the business of Arla Foods UK derives the full benefits of being part of the largest dairy business in Europe and will enable us to strengthen the relationship with UK dairy farmers,” said Peder Tuborgh, chief executive of Arla amba.

“This offer from Arla amba represents fair value for shareholders and will allow Arla Foods UK to continue its development for the benefit of its staff, customers and suppliers,” added Sir David Naish, chairman of Arla Foods UK.

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