25th Mar 2015 - 09:10
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Kraft Foods Group Inc is in talks to be acquired by Brazilian private equity firm 3G Capital in a deal thought to be valued at $40bn (£27bn), according to national media.
Several media outlets, including the Financial Times and the Wall Street Journal, have reported that 3G are in ‘advanced talks’ to acquire Kraft.
Shares in Kraft jumped 15% following the reports on Tuesday. Based on Tuesday's closing share price of $61.32, Kraft was worth $36bn.
3G, in partnership with Warren Buffett’s Berkshire Hathaway, bought ketchup maker H.J. Heinz for $23bn (£15.5bn). The company is also behind Burger King and Restaurant Brands International.
Kraft is one of the biggest food companies in America. It owns Maxwell House coffee and, in 2010, acquired UK chocolate maker Cadbury for £11.5bn.
The company then sold Cadbury off to Mondelez, the company behind Toblerone, Kenco and Oreo brands.
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