Battle Creek - UPI
U.S. corporate giant Procter & Gamble said Wednesday it has agreed to sell it snacks business to Kellogg Co. for $2.7 billion. The deal will shift ownership of Pringles, the iconic potato chip that comes in a tube, to the makers of Kellogg\'s Corn Flakes and other well-known cereal brands. The deal is set up as an all-cash transaction, P&G said in a statement. The deal squashes an earlier effort by Diamond Foods to buy the Pringles business. P&G said it expects to realize a 50-cent-per-share jump in the transaction, \"approximately the same as was estimated at the time of the initiation of the original transaction with Diamond Foods in April,\" the company said. That amounts to an after-tax gain of $1.4 billion to $1.5 billion, said P&G, which produces dozens of household products, including detergents, toothpaste, disposable diapers and mouthwash.