Kerry Foods is understood to have seen its plan to buy Irish firm Breeo Foods hit a stumbling block over price.

Last month, just-food reported that Kerry was close to signing a EUR171m (US$249.7m) deal to buy Breeo, according to a source familiar with the situation.

However, talks between the two sides are believed to have stalled with price rumoured to be a potential stumbling block.

A spokesman for Reox Holdings, the owner of Breeo Foods, refused to be drawn on the speculation but said the company would not agree to a sale unless there was "compelling value benefit to shareholders".

Kerry remained tight-lipped over the affair. "We have never commented on speculation at any stage," a spokesman said.

Breeo owns brands including Dairygold butter and Shaw's deli meats.