Cereal maker Kellogg is to buy Procter & Gamble's Pringles potato chip business for $2.7 billion.
The all-cash deal came after a plan to sell Pringles to Diamond Foods was scrapped amid a probe by US regulators into another side of Diamond's business.
"Pringles has an extensive global footprint that catapults Kellogg to the number two position in the worldwide savoury snacks category, helping us achieve our objective of becoming a truly global cereal and snacks company," John Bryant, Kellogg president and chief executive, said in a statement.
Pringles has $1.5 billion in sales across more than 140 countries. The business has manufacturing operations in the US, Europe and Asia.
Kellogg's brands include Corn Flakes and Cheez-It. The deal is expected to be completed by mid-2012, subject to regulatory approval.
P&G and Diamond Foods announced today that they had mutually agreed to end Diamond's proposed acquisition of Pringles announced in April 2011. That deal ran aground late last year after the US Securities and Exchange Commission launched a probe of Diamond's payments to walnut growers.
Diamond announced on February 8 that an internal audit had found accounting errors in the payments.
