Post Holdings on brink of buying Weetabix for £1.4bn
U.S. cereal maker Post Holdings is poised to purchase Weetabix from the Chinese conglomerate Bright Food Group Co. in a £1.4bn ($1.76bn) deal.
The deal signals the end of the ownership by state-owned Bright, who have owned the British brand since agreeing to buy a 60% stake from Lion Capital back in 2012, as they have been unable to make a significant impact on the Chinese market despite sales doubling in 2016.
Post see the deal as enabling them to them to distribute to a number of international markets, as well as expanding the Weetabix branch into North America.
Weetabix is currently the seventh largest cereal brand with 1.3% of the global share, but trail far behind Kellogs who hold 22.5%.
The dollar's recent strength and the pound's weakness helped Post fight off competition from Associated British Food and Italy's Barilla to land the breakfast giant.