(Bloomberg)—Mondelez International jumped in extended trading on a report that the global snack giant may be acquired by Kraft Heinz, the food company backed by Warren Buffett's Berkshire Hathaway and Jorge Paulo Lemann's 3G Capital.
Mondelez surged 9.7 percent to $47 at 4:27 p.m. in New York. Kraft Heinz advanced 1.9 percent. The Swiss economic magazine Bilanz reported on the possible takeover, citing a person it didn't identify.
Berkshire and 3G have been expanding in the food industry, taking ketchup maker H.J. Heinz private in 2013 and then merging it with Kraft Foods Group last year. The combined company has gained in market value as 3G slashed costs by cutting jobs and shutting factories. Mondelez, the maker of Oreo cookies, was previously part of Kraft, and the companies split in 2012.
** Update 15 Dec 2016 **
(Bloomberg) — Kraft Heinz Co. is not currently in talks to acquire Mondelez International Inc., according to people familiar with the matter.
An earlier report that the U.S. snack maker could be a target for the company sent shares higher. The report came from the magazine Bilanz, which cited a person it didn’t identify.
Mondelez rose 4.7 percent at 4:57 p.m. Chicago time yesterday while Kraft Heinz advanced 2.6 percent after Bilanz magazine reported that Kraft Heinz, backed by Warren Buffett’s Berkshire Hathaway Inc. and Jorge Paulo Lemann’s 3G Capital, is planning a takeover, citing an unidentified source.
A spokesman for Mondelez declined to comment. Representatives for Kraft Heinz didn’t immediately respond to a request for comment.
Berkshire and 3G have been expanding in the food industry. They took ketchup maker H.J. Heinz private in 2013 and then merged it with Kraft Foods Group Inc. last year. The combined company has gained in market value as 3G slashed costs by cutting jobs and shutting factories. Mondelez, the maker of Oreo cookies, was previously part of Kraft, and the companies split in 2012.
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