Processed food giant Kraft Heinz is closing in on selling hot dogs-producer Oscar Mayer. According to a report by Reuters, the business, which also produces a wide range of cold cuts, is currently the subject of multiple offers, including ones from Latin America.
Brazil’s JBS, the world’s largest meat processing enterprise, and Mexico’s food processor and distributor Sigma Alimentos were singled out as the most aggressive suitors for Oscar Mayer. However, it is unclear whether any of them is willing to pay Kraft Heinz’s asking price of $3 billion.
The talks between Kraft Heinz and interested parties are reportedly still underway, and there is no guarantee they will be successful. Any potential deal could still take several weeks before being completed.
Kraft Heinz put Oscar Mayer on the market earlier this year as part of portfolio reorganizing in order to boost the company’s share price. During the process, Oscar Mayer was deemed as a non-core business, accelerating divestment plans. Additionally, Kraft Heinz wants to focus more on healthier options due to the lower demand for packaged and processed foods.
Kraft Heinz’s stock saw a few ups and downs on Thursday before finishing the session 1.32% down and closing at $35.03 per share. The company’s stock is currently 8.11% down year-to-date.