The Wall Street Journal reported on Friday that a transaction could be announced as early as next week.
Kraft Heinz (KHC) is reportedly nearing a deal to break itself up, splitting its grocery and sauces businesses. Following the report, shares of Kraft Heinz traded over 2% higher by Friday afternoon.
The Wall Street Journal reported on Friday that a transaction could be announced as early as next week, citing people familiar with the matter. However, it also noted that the plans could change at the last minute.
On Stocktwits, retail sentiment around KHC stock jumped from ‘bullish’ to ‘extremely bullish’ territory, while message volume stayed at ‘low’ levels.
According to WSJ, the company is betting that the two separate units would be cumulatively worth more than its current value of around $33 billion. More details on the split could not be learnt, the newspaper said.
In July, the Journal reported that Kraft Heinz was planning to spin off a portion of its grocery business into a new entity valued at about $20 billion on its own, leaving the company owning sauces and spreads. While the grocery business would hold many Kraft products, the other entity would house goods including Heinz’s namesake ketchup and Dijon mustard brand Grey Poupon, the newspaper said.
Kraft Heinz is the result of the merger between Kraft and Heinz in 2015. The reported breakup would effectively undo much of the work done since, the report noted.
KHC stock is down by 9% this year and by 21% over the past 12 months.
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