Reginal Thomas
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Mondelez seeks Possible Suitors for European cheese and grocery asset sale

Mondelez International Inc is exploring a possible spin off of its European cheese and grocery unit, which could be valued at up to $3 billion, as the company begins to focus in more on snack food and refreshments.

The Cadbury chocolate and Oreo cookie maker tapped Goldman Sachs Group Inc and JPMorgan Chase & Co to find suitors to acquire the assets.

Last year Mondelez separated its European cheese and groceries business from its coffee business. The European cheese and groceries unit brought in $1.44 billion in revenues during 2014.

Activist investor Bill Ackman revealed his hedge fund Pershing Square held a stake worth $5.5 billion in Mondelez International, this was seen as an attempt to compel the firm to either boost earnings or sell itself.

Mondelez is in the middle of a turnaround aimed to cut $3.5 billion in costs by the end of 2018 and is targeting an adjusted operating margin of 15% to 16% by 2016. The company has tried several different way to cut costs, from shutting down factories along with “zero based budgeting” where all managers have to justify every expense in every new budgeting period.