Blog: Katy AskewKellogg shows willing but is it enough to secure UB?

Katy Askew | 3 October 2014

Kellogg CEO John Byrant has reportedly flown to London to meet with United Biscuits as part of the US company's bid to seal a deal for the UK biscuits group.

According to The Wall Street Journal, Byrant has made the trip to discuss a bid that values UB at around GBP2bn (US$3.23bn).

Kellogg is up against some stiff competition from strategic buyers also competing to take control of United Biscuits. The likes of Ontario Teachers' Pension Plan-backed Burton's Biscuit Co. and Yildiz Holding-backed Ulker are also said to be in the running for the firm. Added to the pot can be a potential float of United Biscuits, which owners Blackstone Group and PAI Partners are also said to be considering.

The private-equity firms are working to extract maximum value as they exit their investment in the maker of Jacob's and McVitie's. And the rivalry to take control of the firm appears intense.

Byrant's visit to London is a statement of intent. But it will take more than this to ink an agreement. Kellogg shareholders will likely be feeling wary  the company does not pay an overly high premium in its chase for United Biscuits.

BLOG

UK food associations come together on Brexit

The plethora of food manufacturing associations in the UK has been argued by some to be an impediment to the industry coming to a coherent position on the aftermath of Brexit and on what the sector sh...

BLOG

Amazon cools talk of plans for wave of grocery stores

An update on Amazon's plans for the grocery sector. The usually reticent retailer has this week poured cold water on claims it has plans for 2,000 physical grocery stores....

BLOG

Will Amazon Go be retail "game-changer"?

Ask any FMCG executive to list the trends shaking up the sector and digital and e-commerce will be pretty high on the list. Drill down into that and Amazon will be one of the subjects in the digital s...

BLOG

UK food producers call for "best possible single market access" post-Brexit

Since Theresa May took over as UK Prime Minister in the wake of the country's referendum vote to quit the European Union, she and her ministers have been at pains not to divulge their negotiating posi...

just-food homepage



Forgot your password?