European competition authorities yesterday (28 August) gave the go-ahead to Kraft’s proposed EUR840m (US$1.076bn) purchase of United Biscuit’s Iberian units. The move is set to considerably strengthen the US food group’s presence in Spain and Portugal.
Go deeper with GlobalData
The European Commission said that it did not anticipate any antitrust issues and had not received any complaints from rival food manufacturers.
The deal, which was inked in July, sees Kraft acquire UB brands in Spain and Portugal along with seven production plants in the region. Kraft will also regain the rights to all Nabisco trademarks – including Oreo and Ritz – in the EU, Middle East, Eastern Europe and Africa.
The deal is being financed through $548m in debt and the $522m stake that the company held in UB. It is expected to be accreditive in its first year, the company said, suggesting that it will boost EPS by two cents. It comes amid market speculation that Kraft’s parent company Altria is preparing to shed its majority stake in the world’s second largest food company.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
