Popular American cereal giant Kellogg on Tuesday announced that it has concluded plans to split into three independent companies, sending the group’s shares up by eight percent in pre-market trading.
According to a statement from the consortium, three of the new companies will focus on plant-based foods, cereal sales in North America and the Caribbean, and global snacks and frozen breakfasts in North America.
Global Snacking Co., North America Cereal Co., and Plant Co. will be the first names of the unnamed organisations. The creation of the latter two will occur through tax-free spin-offs.
Subject to US regulators’ permission, Kellogg plans to finish the separation by the end of 2023.
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‘These businesses all have significant standalone potential,’ Kellogg’s chairman and CEO Steve Cahillane said in a statement.
‘An enhanced focus will enable them to better direct their resources toward their distinct strategic priorities,’ he said.
The giant behind such household names as Corn Flakes and Rice Krispies said North American Cereal and Plant Co. would remain headquartered in Battle Creek, Michigan.
Africa Today News, New York gathered that the Global Snacking will have dual headquarters — in Battle Creek and Chicago.