Post Holdings is considering a merger with the frozen potato business set to be spun off by ConAgra.
The Wall Street Journal reports that the St. Louis-based cereal maker recently discussed a tie-up with the Lamb Weston subsidiary and that talks between the parties could restart as the spin-off takes shape.
ConAgra, which is undergoing a major restructuring to focus on core businesses, announced last year that it planned to divest Lamb Weston, which sells dozens of frozen potato products.
Sources told the Journal that the proposed deal would value Lamb Weston at $6 billion. The division previously announced plans to expand its plants in Washington state and Oregon amid rising global demand.
The deal, meanwhile, would be the largest in Post's history and its third billion-dollar transaction in three years, the Journal reported.
