Produce Investments (PI), the parent company of potato giant Greenvale, has confirmed it is in advanced talks over the takeover of the Jersey Royal Company.

Following speculation in the financial pages of national newspapers this week, listed company Produce Investments released a statement to the London Stock Exchange. It said: 'The company notes the recent press speculation regarding a potential transaction with the independently owned Jersey Royal Company and can confirm that the company has entered into heads of terms and has agreed a period of exclusivity in relation to a potential acquisition of the Jersey Royal Company.

'The heads of terms are non-binding and subject to due diligence, which is progressing. The company will make a further announcement in due course if appropriate.'

The announcement boosted PI's shares in early trading today (8 January), with the price rising from 227p at 8.30am to 245p by 11am. However that still remains well below the high of 320p seen in October 2013.

In a recent interview with FPJ, Greenvale chief executive Angus Armstrong revealed that possible takeovers were on the cards. He said: 'We've always got a couple of projects that we're working on. There are two other things that are pretty serious that we're working on at the moment. We are acquisitive and we will grow the business.'

The Jersey Royal Company dominates supply of the popular seasonal potato, along with Albert Bartlett. The firm employs over 500 people and grows over 1,800 hectares of Jersey Royals, equating to some 25,000 tonnes per year.

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