One of the West Midlands’ biggest employers is set to sell a Christmas pudding business after regulators outlined concerns it controlled too much of the market.

2 Sisters Food Group owner Boparan Holdings agreed to sell the Christmas pudding operations of Brookes Avana after the Office of Fair Trading (OFT) said its takeover of the firm last December meant it united as much as 90 per cent of the UK market for the festive food.

The sale, to Doncaster-based Sargents Bakeries, completes the acquisition of Avana Bakeries, which Boparan Holdings bought from Premier Foods in a £30 million deal which also included Leicester firm RF Brookes.

A spokesman for Boparan Holdings, which employs more than 2,000 people in the region, said its interest in Newport-based Avana was in its frozen and chilled foods offer and it was happy to comply with the OFT ruling.

The company, which last month revealed the closure of the RF Brookes site in Leicester, has seen consistent rises in revenue this year on the back of a string of acquisitions including Northern Foods and Harry Ramsden’s.

Spokesman Andrew Hanson said the sale, which is yet to be rubber-stamped, was for the Christmas pudding production line, and the Avana bakery would continue under Boparan Holdings’ stewardship.