Saudi Arabia's Savola Group has reportedly tabled a joint bid with Singapore investment company Temasek Holdings for Kuwait Food Co.
According to a report in Bloomberg ,citing people with knowledge of the matter, a deal could be valued at between US$4-5bn.
Talks between the three companies are ongoing and an agreement could be reached before the end of the year, the people added.
Savola confirmed last August it had individually engaged in talks with Kuwait Food Co., to acquire a stake in the business. The firm also said in a statement to the Saudi stock exchange it had signed a non-disclosure agreement with Kuwait Food Co. regarding the transaction.
In January this year, Kuwait Food Co's majority shareholder, Al Khair National for Stocks and Real Estate Co., owned by the al-Kharafi family, confirmed the company was still in talks with "several parties" regarding a sale of its stake after media reports claimed a sale was close to being put on hold as talks were faltering, partly due to differences on price.
Speculation Kuwait Food Group – also known as Americana – was looking for a buyer began in April last year. A buyout group including KKR and CVC Capital Partners had also reportedly submitted bids.
Americana manufactures frozen foods including California Garden beans and Farm Frites, as well as being a franchise operator of some restaurants including KFC and Pizza Hut.
Temasek Holdings declined to comment when approached by just-food.
Savola could not be reached for comment at time of press.