Kraft Foods is close to selling its Post cereals business to US firm Ralcorp Holdings, according to reports.
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The US food giant is holding talks with Ralcorp on setting up a “stock-based transaction” to reduce the tax burden for both parties, to the Wall Street Journal reported today (5 November).
Such a deal could be manufactured by spinning off the Post business and then combining it with Ralcorp, the WSJ said, citing unnamed sources. Kraft shareholders would then have a stake in the merged business.
Officials at Kraft and Ralcorp did not return requests for comment when contacted by just-food today (5 November).
Speculation over the future of Post, the third-largest cereals business in the US, first emerged in the summer. Kraft has remained tight-lipped over the future of the unit, which produces brands including Grape Nuts and Shredded Wheat.
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