Kraft Foods has refused to be drawn on reports that a sale of its Post cereals business to US firm Ralcorp Holdings is imminent.
Go deeper with GlobalData
The US food giant is reported to be holding talks with Ralcorp on setting up a “stock-based transaction” to reduce the tax burden for both parties.
Such a deal could be manufactured by spinning off the Post business and then combining it with Ralcorp, the Wall Street Journal said, citing unnamed sources. Kraft shareholders would then have a stake in the merged business.
However, a Kraft spokesperson remained coy about the reports. “We don’t comment on rumours or speculation, and don’t have anything to specific to report,” the spokesperson told just-food last night (5 November).
The spokesperson added: “As pointed out during various earnings calls, we continue to evaluate our brands and businesses in terms of our long-term growth plan, using several criteria: growth potential, relative market share and profitability.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSpeculation over the future of Post, the third-largest cereals business in the US, first emerged in the summer. Kraft has steadfastly remained tight-lipped over the future of the unit, which produces brands including Grape Nuts and Shredded Wheat.
