The Canadian Competition Bureau has confirmed that it does not intend to challenge US-based ConAgra Foods’ acquisition of Ralcorp for $6.8bn.
This decision by the agency satisfies one of the conditions for the completion of the transaction. However, the deal remains subject to certain other closing conditions, including approval by Ralcorp's shareholders.
The acquisition of Ralcorp by ConAgra Foods will create one of the largest packaged food companies in North America, with annual sales of around $18bn and a combined workforce of more than 36,000.
The deal is in line with ConAgra Foods' Recipe for Growth strategy, which is aimed at expanding the private label segment, strengthening the core business and adjacencies, and international expansion. It will position ConAgra Foods as a leading private label packaged food business in North America, with sales of about $4.5bn.
ConAgra expects the deal to modestly benefit its fiscal 2013 financial results. The transaction is expected to be completed by 31 March 2013.
Ralcorp sells Post branded cereals and a wide variety of private label food products. It also produces ready-to-eat and hot cereal products; nutritional and cereal bars; crackers and cookies; food service, frozen griddle products and biscuits; food service and breads, rolls and muffins.
ConAgra Foods, headquartered in Omaha, Nebraska, produces a wide range of food products including cooking oil, frozen dinners, hot cocoa, hot dogs, peanut butter and many others. Its brands include Hunt's, Healthy Choice, Marie Callender's, Slim Jim, Reddi-wip, Egg Beaters, Hebrew National, P.F. Chang's, and Bertolli ready meals.
