Dairy firm Arla Foods has agreed to be bought outright by its majority shareholder in a deal that values the British firm at £434.5 million.
Swedish-Danish Arla amba, which already owns 51 per cent of the shares, will pay 71 pence a share cash for the remainder.
Arla Foods UK was formed in 2003 when the Danish-Swedish co-operative merged its UK business with Britain's Express Dairies.
The co-operative, which is owned by about 10,600 dairy farmers, is struggling to deliver better milk prices to its owners in an increasingly competitive European retail market.
Its sales in Muslim countries have been slashed by about 60 per cent after consumers boycotted Danish goods in January over the publication of cartoons of the Prophet Muhammad in a Danish newspaper.
Last year, Arla amba abandoned merger talks with Dutch dairy firm Campina after problems concerning differences in the two co-operatives' capital structures.