Post Holdings held merger talks with ConAgra’s Lamb Weston

US-based cereal maker Post Holdings recently held merger negotiations with Lamb Weston, a frozen foods unit of ConAgra Foods.

The talks have been stopped, but may be revived, reported Wall Street Journal, citing people familiar with the matter.

ConAgra currently intends to spin off Lamb Weston this year, reported Reuters.

A deal between ConAgra and Post Holdings could take the market value of Lamb Weston to approximately $6bn.

Post manufactures shredded wheat cereals and raisin bran, and has a market value of approximately $4.9bn.

Producer of Slim Jim beef jerky and Chef Boyardee pasta, ConAgra announced plans last November to spin off its Lamb Weston unit and make it into a publicly listed company.

Under the new CEO Sean Connolly, ConAgra has been trimming down its assets.

Earlier this year, it divested its private-label business to TreeHouse Foods for approximately $2.7bn, although it acquired the business for twice the amount.