The UK's Office of Fair Trading has said that it will investigate the proposed acquisition of ice cream maker Richmond Foods by US investment fund Oaktree Capital.

Oaktree's GBP182m bid for Richmond requires investigation, the competition watchdog said, because the US group already owns European ice cream manufacturer Roncadin.

The OFT said it would consider whether the merger would result in a "substantial lessening" of competition in the UK ice cream market but declined to comment further until the investigation has been completed.