Press "Enter" to skip to content

Kellogg’s looking to buy Indian snack firm worth $3 billion

In order to beat the slowing sales of core serial products, Kellogg’s (K) has been on a global hunt for buyout-worthy firms for the past two years. The 2016-purchase of a controlling stake in Brazil-based biscuit-maker Parati, as well as the acquisition of Nigerian food firm Multipro were part of this strategy.

Now, the Pringles-maker is looking to buy leading Indian snack company Haldiram’s, according to Indian media. The report by Economic Times says that all the parties in the deal have intensified talks as an agreed negotiation term would lapse by February-end.

The deal might prove to be difficult to pull off due to Haldiram’s complex corporate structure. The company operates in three branches out of three different cities. To make things worse, there are internal conflicts between the branches, which are in the consideration of the court.

Kellogg’s is reportedly eying two of the branches, which will together value approximately $3 billion, without the restaurant business.

Read: Kellogg’s stock drops 4% despite Q4 earnings beat

Citing people who are familiar with the matter, the report says, while Kellogg’s wants to buy 51% stake in the firm, the management of the Indian firm is unwilling to relinquish control of more than 25% holding. Deutsche Bank is acting as an advisor in the deal.

India is a key market for the Battle Creek, Michigan-based food company as it accounts for almost 10% of its Asia-Pacific revenue.

Earlier, rival PepsiCo (PEP) had offered to buy the Indian firm, but the talks failed to find common ground.

 

Follow our Google News edition to get the latest stock market, earnings, and financial news at your fingertips 

Related Articles

Top
%d bloggers like this: