Mondelez Soars on News of Possible Takeover by Kraft Heinz

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Oreo Milka 300g Bar
Oreo Milka 300g Bar Credit: Mondelez International

Oreo and Oscar Mayer may be getting back together, if an international news report citing an unnamed source is indeed accurate.

Mondelez International Inc. jumped in extended trading Wednesday on a report that the global snack maker may be acquired by Kraft Heinz Co., the food company backed by Warren Buffett's Berkshire Hathaway Inc. and Jorge Paulo Lemann's 3G Capital. The magazine Bilanz reported on the possible takeover, citing a person it didn't identify.

Mondelez surged 9.7% to $47 at 4:27 p.m. in New York. Kraft Heinz advanced 1.9%.

If such a deal were to proceed, it would bring together dozens of well-known packaged food brands including Heinz ketchup, Kraft macaroni and cheese, Oscar Mayer meats, Oreo cookies and Ritz crackers. Kraft Heinz was the 79th largest advertiser in the United States last year and Mondelez ranked 129th, according to the Ad Age Datacenter.

Back in 2012, Kraft Foods Inc. changed its name to Mondelez International Inc. after the spin-off of its North American grocery business, which was then known as Kraft Foods Group Inc. In 2013, Berkshire and 3G took ketchup maker H.J. Heinz private. In 2015, Berkshire and 3G merged Heinz with Kraft Foods Group. The combined company has gained in market value as 3G slashed costs by cutting jobs and shutting factories.

Mr. Buffett and Kraft Heinz didn't immediately respond to messages from Bloomberg seeking comment. Michael Mitchell, a spokesman for Mondelez, declined to comment to Bloomberg and to Ad Age.

-- Bloomberg News with additional reporting by Ad Age

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