3G Capital in pursuit of Kraft Foods?

Today has seen press speculation that Kraft Foods is the target of a private equity takeover by 3G Capital Management for a reported USD 40bn. Should the deal proceed it will be very interesting to see how this potential transaction is viewed by the US media and the broader US public, given the sometimes negative view that is reported of private equity. Kraft themselves took heavy criticism back in 2010 when they took over UK confectioner Cadbury's in a deal that ultimately cost Kraft USD 8bn and a raft of negative publicity within the British press and was a major influencing factor in changes to UK takeover laws.

3G Capital Management and Warren Buffet's Berkshire Hathaway teamed up last year to acquire HJ Heinz Company, paying just under USD 28.5bn, so if Kraft were to be the next target of this powerful consortium it would not be unrealistic to see the two food groups merged to form a pretty substantial "superfood" corporation.

Filed under: private equity, food, M&A, US, dealmaking