Brazilian private equity firm 3G Capital Partners is in talks to acquire American Food Company Kraft Foods, in a deal potentially valued at more than $40bn.
According to people familiar with the matter, the private equity firm would make the purchase through its H.J. Heinz Co. Unit, The Wall Street Journal reported.
Based in Northfield, Kraft Foods reportedly has a current market value of about $36bn.
Kraft currently operates through six segments including cheese, Refrigerated Meals, Beverages, Meals & Desserts, Enhancers & Snack Nuts, and Canada. Its portfolio of brands includes Kool-Aid, Grey Poupon, Philadelphia Cream Cheese, Planters and Cadbury chocolate.
According to the WSJ, 3G's move comes when Kraft and many other US based packaged-food giants are struggling with rapid changes in consumer tastes leading to reduced sales and overcapacity.
The Brazilian firm has recently raised some $5bn for deal making.
In 2013, 3G Capital Partners teamed up with Warren Buffett's Berkshire Hathaway to acquire Heinz and its stable of ketchup and frozen-food brands for $23bn.
WSJ adds that Buffett earlier said he would work with 3G on another friendly takeover if the opportunity looks right.
