Oak Brook, Ill.-based TreeHouse Foods said the Federal Trade Commission (FTC) has delayed the sale of its private label ready-to-eat cereal business to St. Louis, Ill.-based Post Holdings. TreeHouse Foods said the FTC has indicated it is currently reviewing the transaction in more detail, and closing will be delayed beyond July. The sale was announced in May and was expected to close this month.
According to a recent press release, the two companies remain committed to the transaction and continue to believe that the transaction will generate substantial cost savings and other efficiencies that would benefit both retailers and consumers by creating stronger competition in the nearly $9 billion ready-to-eat cereal category (at retail, including private label and branded) and among other breakfast options.
TreeHouse will continue to operate its ready-to-eat cereal business.