CAR parts group Lucas Varity, one of East Lancashire's biggest employers with sites in Burnley and Accrington, has confirmed it is in talks with other companies which could lead to a merger.

The company said it was discussing a wide range of "strategic partnerships" including mergers, joint ventures, acquisitions and alliances. It has held preliminary discussions with a number of companies but said there is no certainty they would result in a deal.

In November Lucas Varity announced an extensive review of its business after a battle against shareholders opposed to a planned move of the company's headquarters to America.

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