Mondelez International is reportedly planning to sell its European cheese and grocery business in a deal that could be valued at as much as US$3bn.
According to Reuters, Mondelez has appointed JPMorgan Chase and Goldman Sachs to shop the business. The Kraft Heinz Co has right of first refusal as part of the 2012 spin-off of the old Kraft Foods Inc that formed Mondelez and Kraft.
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The European grocery and cheese operations include Mondelez's Philadelphia brand. The unit was separated into a stand-alone business earlier this summer when Mondelez disposed of its coffee interests. The move prompted speculation that a potential sale could be on the cards.
Asked to confirm whether Mondelez was considering selling the assets and had hired bankers to weigh up a move, a spokesperson told just-food: "Cheese and Grocery is a good business, with solid margins and cash flow, and it helps to provide scale in some markets. The team is executing well, having posted solid growth in the second quarter and year-to-date. Our Philadelphia brand, for example, is up high-single digits year-to-date through June. With respect to market rumors, however, I’m not going to get into hypotheticals on specific assets."
