Canadian giant George Weston Ltd may reclaim full ownership of key brand, Entenmann's confectionary. from troubled Hibernia Foods.

The news came after it emerged that Kerry Group had agreed to buy three of Hibernia's six British plants from the former's receiver, KPMG, for an estimated £15 million sterling (€21 million). The deal did not include the licences to produce and distribute Entenmann's and Sara Lee products in Europe.

Dublin-based Hibernia has had the European licences for Entenmann's, which is ultimately owned by George Weston, since 1998. It is one of the best-known confectionary brands in the world. Last October, General Motors Acceptance Corporation (GMAC) placed Hibernia in receivership on foot of a €17.5 million debt.

Yesterday, George Weston Ltd chairman and president, Mr Galen Weston, told The Irish Times that the company was definitely interested in resuming control of the Entenmann's brand in Europe. It bought the US business from Unilever last year. He raised the issue with KPMG in the course of a visit to Dublin. George Weston Ltd is one of Canada's largest food companies.

GMAC's appointment of KPMG threw a question mark of the exact status of both licences. In the case of Entenmann's, it is understood that Hibernia had an "evergreen" licence for Britain and Ireland that gave it almost total ownership of the brand in these islands. It had a five-year renewable licence for Europe.

Hibernia was said to be re-negotiating this with George Weston at the time that it went into receivership.

Hibernia manufactures both brands at a plant in Bridlington, north Yorkshire. Kerry has acquired Hibernia facilities in Birmingham, Bristol and Hartlepool from the receiver.