Ryvita and Bedfordshire cereals firm Jordans have announced plans to merge their operations.

The city learned on Monday that Associated British Foods, which owns Ryvita crispbread, will take a 62 per cent controlling interest in the combined business.

The balance will be held by existing shareholders of Jordans, including the founding Jordan family.

Jordans is headquartered at Biggleswade, on the Stratton Business Park, and employs 350 staff.

Manufacturing jobs there are safe, a company spokesman said, although plans to form a single head office - which could be in Bedfordshire - may result in a small number of redundancies elsewhere.

The Jordans breakfast cereals business was started by Bill and David Jordan in 1971 with a philosophy to provide consumers with healthy, natural foods.

The brothers will maintain a substantial shareholding and an active involvement in the running of the new independent business.

The Jordans & Ryvita Company will have a combined annual turnover of about £130 million and employ around 600 people across Britain in Biggleswade, Poole and Stockport.

Both the 80-year-old Ryvita brand and Jordans products will be subject to investment.

The two sides have said the tie-up will help satisfy increasing consumer demand for natural ingredients and healthy eating.

Associated British Foods is listed on the London Stock Exchange with a market capitalisation of £6.3 billion. It bought a 20 per cent stake in Jordans in September 2007.