China spits out United Biscuits
The American and French private equity owners of UB - whose brands include Jaffa Cakes, Hobnobs, Hula Hoops and McCoy's crisps - are understood to have ended exclusive talks with Shanghai-based Bright Food after no formal offer was forthcoming.
Blackstone of the US and PAI Partners, the French buyout specialist, which have co-owned UB since 2006, are believed to have opened up the possibility of non-exclusive talks with other bidders for the British food major.
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Hide AdCity analysts said a takeover of UB would interest several international players, including Campbell Soup Company of the US, Kraft, which controversially snapped up British group Cadbury earlier this year, and Kellogg's. Other private equity groups may also be sounded out.
Blackstone and PAI were said to be poised to launch an auction for United earlier this autumn before Bright Food forestalled it with an approach worth up to 2.5 billion. However, that offer was never confirmed.
The UB owners are also said to have previously considered floating the business on the stock market, but that is now thought less likely.
UB, based in Hayes, Middlesex, is Britain's biggest biscuit producer, with 7,000 staff and making a 223 million profit last year. The company, formed in 1948, has yearly sales of 1.3bn and 1.2bn of debt.The group came about through the merger of two Scottish family businesses, McVitie & Price and MacFarlane Lang.