Reuters was first to report the consumer unit of India’s $144 billion Tata Group is in talks to buy at least 51% of popular Indian snack food maker Haldiram’s but it is not comfortable with the $10 billion valuation sought. Haldiram’s, a household name in India, is also talking with private equity firms including Bain Capital about the sale of a 10% stake, sources said. Tata Consumer Products owns UK tea company Tetley and has a partnership with Starbucks in India, and a deal for the Indian snack maker would see the conglomerate directly compete with Pepsi and billionaire Mukesh Ambani’s Reliance Retail. Shares in Tata Consumer closed nearly 4% higher in Mumbai trade after Reuters reported the news. Indian shares closed higher after a late rebound in consumer stocks, with the sectoral index rising 1% due to a surge in Tata Consumer.
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