Kraft Foods to acquire Groupe Danone’s global biscuit business

Kraft Foods Inc. has made a binding cash offer to acquire the global biscuit business of Groupe Danone for $7.2 billion in a bid to gain broader operating scale and additional reach across the globe.

The planned acquisition encompasses Danone's market-leading biscuit brands, including LU, Tuc and Prince, and operations and assets in 20 countries, including 36 manufacturing facilities. The transaction does not include Danone's joint ventures in Latin America and India.

Kraft said the acquisition will help it double the size of its business in China and gain entry into the biscuit category in Eastern Europe, notably in Russia, where Danone is the share leader. The company also will establish footholds in Malaysia and Indonesia.

Both companies anticipate that the transaction will close by the end of the year, a statement from Kraft said.