Talks between Mondelēz and Campbell Soup have “reached a stalemate” after the confectionery giant submitted its final offer for Campbell’s international business which includes Arnott’s.
Sources familiar with the deal told CNBC that the final offer was below Campbell’s roughly US$3 billion price expectation.
The stalemate could result in Campbell’s offloading Arnott’s for a lesser value than its desired price or totally abandoning the plan to sell the company. The planned sale of Arnott’s and its fresh food brands announced in 2018, was expected to help pay the debt the company sustained after acquiring pretzel brand Snyder’s-Lance for $6.2 billion and selling its Bolthouse Farms business.
FMCG giants Kraft Heinz and Ferrero had also expressed interest in buying Arnott’s.
Mondelēz recently bought the cookie brand Tate’s Bake Shop for $500 million and last year launched SnackFutures, an innovation hub for new snacking brands.
Just last week, chocolate giant Ferrero sealed a $1.3 billion deal with Kellogg for its cookie brands and fruit snacks businesses.