Irish convenience food manufacturer Greencore Group Plc has been exploring a potential combination with its London-listed rival Bakkavor Group Plc, according to people familiar with the matter.

Greencore’s takeover bids undervalue its business. Earlier today, Ireland-based Greencore revealed it had tabled two offers for Bakkavor in the last fortnight. The most recent bid, put forward on 7 March,

Bakkavor Group Plc rejected a cash and stock bid from Irish convenience food manufacturer Greencore Group Plc valuing the London-listed firm at £1.14 billion ($1.5 billion).

Greencore argues bringing the two own-label suppliers together would create “a leading UK convenience-food business”.

UK food company Greencore said two bids it made for rival Bakkavor - the second worth £1.13bn - had been rejected.

The FTSE 250 firm said the latest bid of £1.14billion 'significantly undervalued the company and its future prospects'.

Bakkavor has rejected a £1.1bn takeover bid from rival Greencore, a move that would have created a food giant with a combined revenue of £4bn. An initial proposal was turned down by Bakkavor’s board on February 27, with a second, revised offer also dismissed on March 10, as it “significantly undervalued the company and its future prospects”.

Bakkavor Group Plc rejected a cash and stock bid from Irish convenience food manufacturer Greencore Group Plc valuing the London-listed firm at £1.14 billion (€1.35 billion). Greencore offered 85 pence in cash and 0.523 Greencore shares for each Bakkavor share in a revised proposal on March 7th, according to a statement on Friday.