Baugur buys UK's Big Food Group

Baugur has been steadily making acquisitions in the UK

Investors led by Icelandic group Baugur have confirmed a £326m ($635.1m) cash takeover of Britain's Big Food Group.

The group said it would sell on the Iceland supermarket chain to a separate entity owned by investors such as Icelandic lender Kaupthing Bank.

Big Food Group's remaining assets would include Booker cash-and-carry outlets and Woodward Foodservice.

Recent Baugur acquisitions include jewellery chain Goldsmiths and fashion chains Karen Millen and Mk One.

Baugur is Iceland's biggest retailer and has been steadily extending its presence on the UK High Street.

It holds stakes in department store group House of Fraser and supermarket chain Somerfield.

In the latest deal Big Food shareholders will get 95 pence a share in cash from the Baugur consortium.