Food group Greencore has ended talks for a possible takeover, blaming turmoil in global debt and equity markets for the move.

The announcement this morning sent its shares down over 10 per cent.

"Given the board's unanimous view on the strong underlying value of Greencore and the current dislocation in global equity and debt capital markets, both parties have agreed to end discussions," it said in a statement.

Greencore, one of the biggest sandwich and ready meal suppliers to Britain, said in October it had received a potential takeover approach.

Analysts say prepared food players are being squeezed by a highly consolidated retail sector, putting pressure on them to merge in a bid to cut costs.

Greencore in July described the British consumer food market as "challenging and volatile." It is due to publish its annual financial results tomorrow.

Greencore makes prepared meals under the Weight Watchers brand and supplies sandwiches to supermarkets, garage forecourts and airlines.

Additional reporting: Reuters