Del Monte Pacific takes bite at US canned food unit

Del Monte Pacific has agreed to buy the US canned food business of Del Monte Foods - a separate entity - from funds affiliated with KKR, Vestar Capital and Centreview Partners for nearly $1.7 billion.

Singapore-listed Del Monte Pacific's move to take a bite at the US canned food business was welcomed by investors, with the stock rising nearly 10% on Friday.

The deal will open up new markets - in the US and South America - to Del Monte Pacific, which is led by the Campos family in the Philippines.

Del Monte Pacific currently only has the rights to distribute Del Monte...