3G Capital in takeover talks with Kraft

Private equity group 3G Capital is holding talks to acquire Kraft in what could be one of biggest corporate buyouts in recent memory, according to media reports.

Berkshire Hathaway Inc. Class B

$452.14

11:09 01/11/24

0.27%

$1.22

The negotiations were said to be in an “advanced stage”, the Wall Street Journal reported on Wednesday. Additionally, the Financial Times valued a potential takeover in the region of $40 billion. Based on Tuesday’s closing price of its shares, Kraft can be valued at around $36 billion.

Both companies have declined comment with a spokesperson for Kraft initially dismissing the reports as “pure speculation.”

3G Capital, co-founded by Switzerland based Brazilian banker Jorge Paulo Lemann, has form in the consumer foods market with its backing of Heinz and Burger King. However, a potential takeover of Kraft could dwarf all its previous deals in the sector.

In February, 3G Capital was rumoured to be interested in the Campbell Soup Company. The private equity company has also worked with Warren Buffett's Berkshire Hathaway on corporate takeovers.

Kraft recently spun off its Cadbury’s, Toblerone, Kenco and Oreo brands into a separate commercial entity Mondelez.