Associated British Foods has confirmed it has agreed to buy Azucarera Ebro, the sugar operations of Spanish food company Ebro Puleva, for €385m (£326m).

The food-to-clothing company said the acquisition would strengthen the existing EU operations of its sugar business British Sugar.

It has been in talks to buy Azucarera Ebro, which is the leading sugar producer in Iberia, since mid-November.

Azucarera Ebro reported sales of €586m and operating profit of €44m in the year to 31 December 2007.

“The business enjoys a leading position in Iberia supported by modern beet factories and a new cane refinery that will benefit from our partnership with Illovo Sugar,” added CEO George Weston.