Weetabix, the largest cereal company in the UK, is to be sold to Post Holdings, the third biggest player in the US cereal market, for $1.8 billion (£1.4 billion), according to reports in the BBC and the Independent.
Chinese outfit Bright Food has been the majority owner of Weetabix since 2012, when the company bought a 60% stake in the cereal maker. However, the brand has reportedly unable to make the hoped-for impact in the Chinese market, leading Bright Food to seek a buyer for its stake earlier in the year.
The deal is expected to be completed by the third quarter of 2017, giving Post access to the UK market through the Weetabix brand, as well as opening up the UK market to its own brands.
“Combining together two category leaders continues our strategy of strengthening our portfolio in stable categories and diversifying into new markets, bringing much-loved brands to significantly more customers globally”, commented Post president and CEO Rob Vitale.
Source: Independent /BBC