U.S. cereal company Post Holdings has agreed to buy British brand Weetabix from China’s Bright Food Group Co Ltd in a 1.4 billion pound ($1.76 billion) deal that will expand its international business. Sonia Legg reports
(SOUNDBITE) (English) CHIEF ECONOMIST, WORLD FIRST, JEREMY COOK, SAYING:
“My travels in Asia, people don’t have cold, sweet breakfasts. Its move back to the United States – the home of breakfast cereals – is probably a good thing for the company. It never worked in China, it didn’t seem that the company that bought it pushed it particularly hard and I think that Weetabix will be more than happy to be back in rather safer American hands.”
It has a royal warrant, is the nation’s top-selling cereal brand and was family-owned until 2004.
It’s also the largest producer of breakfast cereals in the UK and employs around 2,000 people.
Bright says the sale doesn’t mean the end of its international ambitions.
It’s sticking to its overseas push and will use the money from the sale to expand.