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General Mills: to buy pet food company for 8 billion dollars

(CercleFinance.com) - In a surprise deal, General Mills on Friday said that it would acquire Blue Buffalo, a maker of natural foods for cats and dogs, based on an enterprise value of approximately 8 billion dollars.

The US food giant, which makes Yoplait yogurts and Cheerios cereals, said the transaction will establish the company as the leader in the US wholesome natural pet food category, the fastest growing market segment.

The deal will also accelerate the group's portfolio reshaping strategy, General Mills said.

However, its shares were down over 4% in pre-market trading today, while the Blue Buffalo stock was jumping 16.7% at 39.8 dollars, almost matching the price of 40 dollars per share offered in cash by General Mills.

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