Negotiations to sell United Biscuits to China's Bright Food Group are near collapse, people familiar with the matter say, dealing a blow to efforts by a pair of private equity firms to unload the UK snacks maker, known for its Carr's crackers.

Blackstone Group and France's PAI Partners had entered into exclusive talks with Shanghai-based Bright Food for a deal could have been valued at more than £2bn. The exclusivity period has not officially ended, but the talks are effectively dead, according to people familiar with the situation.