Private equity group 3G reportedly in $40bn takeover talks with Kraft

25th March 2015

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Brazilian private equity group 3G Capital is reportedly in advanced talks to buy US food giant Kraft in a deal worth some $40bn.

According to The Financial Times it is uncertain at this point given the potential size of the deal whether the firm, that already controls fast-food group Burger King and Heinz, would conduct the transaction alone or would bring in a second party.

Two years ago, 3G, which was co-founded by Jorge Paulo Lemann and Berkshire Hathaway, Warren Buffett’s investment firm, together bought Heinz for $23bn.

Following the news Kraft shares soared by almost 17% in after-hours trading in Tuesday and based on the closing price the business famous for its Philadelphia cream cheese was valued at $36bn.

Kraft bought Cadbury back in 2010 for £11.5bn but is now owned by Mondelez, a business which was spun off from Kraft in 2012. Mondelez, owns among others, the Oreo brand and Trident gum.

3G has been targeting a number of food groups and earlier this year, was reportedly looking into the Campbell Soup Company.

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