Kerry Group has today (15 July) revealed it is in exclusive talks to buy Cargill's flavours business.

The Ireland-based company, which owns consumer brands like Wall's sausages but derives over two-thirds of its revenue from food ingredients, said a deal would "advance" its ability to serve food and drink manufacturers.

"Kerry is a leading global food ingredients and flavours provider and a leader in development and delivery of consumer-preferred taste solutions. The acquisition of Cargill Flavor Systems would again advance Kerry's capability to provide unrivalled innovative integrated customer solutions across all food and beverage end-use-markets and extend the group's market spread in emerging markets," Kerry chief executive Stan McCarthy said.

Kerry said Cargill a "global customer base" and had flavour development and application centres in 22 countries.

It added, however, that the talks "may or may not result" in a deal being struck.

In March, Kerry CFO Brian Mehigan said the company could look to spend up to EUR1.5bn (US$2.12bn) on acquisitions in 2011. He also indicated that Kerry wanted to have a "bigger footprint" in emerging markets, where its generates 25% of its food ingredients revenues.