Northfield / IL. (kf) Kraft Foods Inc., which is aiming to get rid of its slow-growing assets, is expected to sign a deal to sell its Post cereals business for nearly 2,8 billion USD to the St. Louis, Missouri-based Ralcorp Holdings Inc. – the Wall Street Journal reported, citing people familiar with the matter. According to reports, both Kraft Foods and Ralcorp Holding are discussing a stock-based transaction. Kraft is expected to spin-off the Post cereals business, and then merges it with Ralcorp, leaving Kraft holders with equity in the merged entity, and freeing both parties from tax liability, the Journal noted. Kraft´s Post business, which includes the Shredded Wheat, Raisin Bran and Grape-Nuts brand cereals, is the No. 3 United States cereal maker by sales, the Journal noted. Market research company Information Resources Inc. reportedly said that during the first nine months of this year, sales of Post cereal at most of the food retailers declined two percent to 699 million USD. The stagnant sales were amid the rising concerns about obesity among children. The deal, which would raise revenue at Ralcorp Holdings by about 50 percent to 3,3 billion USD, is expected announce within the next few weeks, the Journal reported, according to one person familiar with the proposed transaction.
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