Ranjit Singh Boparan, the hugely-successful UK food industry entrepreneur, yesterday won the battle for control of Northern Foods, after the maker of Goodfella's pizzas and Fox's biscuits agreed to back his £342-million all-cash offer and withdrew the agreed merger with Ireland's Greencore Group.

Northern Foods succumbed to a high-premium all-cash bid from Boparan Holdings Limited after agreeing two month ago to a "merger-of-equals" with Greencore that would see the creation of a new company called Essenta Foods.

Boparan's 11th hour bid came after the UK Takeover Panel issued a "put up or shut up" order until 5:00pm yesterday, but the Midlands-based chicken entrepreneur was able to table a bid that was 54-per cent higher than Greencore.

Boparan's £342 million all-cash offer is £106 million more than the £236 million all-share proposal put forward by Greencore for the Leeds-based food manufacturer.

His cash offer was 73 pence per share or a premium of 61.3 to the closing share price of 45.3p per share on 16 November, the day both Northern Foods and Greencore announced the merger. Greencore's offer is 48.2 pence per share at current share prices.

Anthony Hobson, chairman of Northern Foods said, ''This attractive cash offer …. is a compelling opportunity for our shareholders to realise a cash exit, and as such the Board of Northern Foods will be unanimously recommending that Northern Foods Shareholders accept Boparan's offer.''

The merger will create a company with a turnover of more than £2 billion and become one of Britain's major food suppliers, said the Indian born chicken magnate.

But no details were given by Boparan on the means of financing the acquisition since Northern Foods has £219 million debt and a pension deficit of £142 million.

Before announcing the Northern-Greencore merger in November, Greencore committed to inject £15 million annually into Northern's pension scheme to reduce its deficit, but it is unclear whether Boparan has agreed to the same terms.

Northern Foods prime business is supplying ready meals to five key retailers - Asda, Marks & Spencer, Morrisons, Sainsbury's and Tesco and food supply contract with British Airways.

It's branded products, including Goodfella's pizzas, Fox's biscuits and Matthew Walker Christmas puddings, which are sold through a number of distribution channels, make up for approximately one-third of its nearly £1 billion annual sales.

Boparan is one of the UK's most successful self-made businessmen, whose net worth is reported to be around £130 million.

He along with his wife launched the 2 Sisters Food Group in 1993, which supplies chicken products including its Buxted poultry brand to the retail, food service and food manufacturing sectors.

It has 13 manufacturing sites in the UK, one each in the Netherlands and the US. It employs over 5,000 people, and annual sales now exceed £650 million

In 2009, he bought the Fishworks restaurant chain out of administration and last year bought Harry Ramsden's, the famous fish and chip restaurant chain of 36 restaurants in the UK.