Ice cream company Allied Brands has announced that it has entered into a memorandum of understanding to acquire the assets of Retail Brands Group Pty, which include the Wendy's Ice Cream chain of 325 franchised outlets in Australia and New Zealand.

Allied Brands runs the Baskin-Robbins ice-cream chain. As well as Wendy's Ice Cream, Retail Brands' assets include and an ice cream production plant in Victoria, and the Australian rights for the operation and development of the Quizno's subway sandwich business.

"The company believes that the acquisition of the Wendy's chain would give the company a very strong market share with over 400 outlets," it said. "Wendy's have a very strong presence in the shopping centre environment, while Baskin-Robbins has the largest presence in the suburban and tourist related areas."

The company also said it was in the final stages of negotiation with the US brand owner of a well-known major complimentary brand.