updated - September 18, 2021 Saturday EDT
American multinational cereal maker Kellogg's Chief executive officer is reportedly working to seal the deal worth $3.23 billion (2 billion pounds) with McVitie's biscuits manufacturer United Biscuits Ltd.
Kellog's remained mum about the deal last month, saying that both companies are not negotiating yet.
The maker of Fruit Loops and Raisin Bran and Corn Flakes cereal reportedly employed a financial adviser to study the bid for United Biscuits.
Other companies like Turkish Biscuit Company Ulkler Biskuvi Sanayi have placed their bids during the second and last rounds of bidding ending Oct. 31 for United Biscuits.
Turkish biscuit company Ulker Biskuvi's ownerYildiz Holding saw potential to invest in United Biscuits last Aug. while Philippine manufacturing giant San Miguel Corp stated that it was planning to bid independently.
Another company that has battled out with Kellogg's is Burton's Biscuits.
Burton's Biscuits was acquired by Ontario Teachers' Pension Plan last year has worked with several banks to throw in a counter-bid for United Biscuits.
Other companies connected with United Biscuits include Middle Eastern food manufacturer Savola Group, Italy's Ferrero and Chinese private equity firm Hony Capital.
The British food manufacturer, known for products like McVitie's biscuits, Jacob's Cream and Crakers and Twiglets, stated that its private equity owners, Blackstone and PAI Partners are looking on plans for a sale of its IPO if a good offer comes by.
For 2 billion pounds, United Biscuits reportedly seen that good offer made by Kellog's.
Financial analysts state that the Kellogg-United Biscuits team up would benefit both companies since Kellogg's has a large snack brand presence with products like Keebler cookies, Pop Tarts and Cheez-It crackers.
Kellogg reported last Jul. that its revenues dropped down 16 percent in the latest quarter.
However, the company showed an increase in shares as Kellogg's jumped 2.25 percent on Aug. 6 in the New York Stock Exchange.
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