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Brazil’s JBS and Mexico’s Sigma Alimentos are among the companies competing to acquire Oscar Mayer, according to Reuters.

Oscar Mayer is a meat and cold cut company that produces hot dogs, bologna, bacon, ham and the Lunchables brand. It is a subsidiary of Kraft Heinz and is headquartered in Chicago, US. It was first reported in May that Kraft Heinz was looking to sell Oscar Mayer.

The potential divestment of the hot dog brand, which sources say could fetch around $3 billion, comes as Kraft Heinz looks to reshuffle its portfolio to focus on more healthy food products. According to reports, the reorganisation is in response to weight-loss drugs weighing on demand for processed foods, particularly in the US.

Reports state that Oscar Mayer has attracted interest from several potential buyers who have submitted initial bids in recent weeks. The sources added that, if the talks are successful, a potential deal could be finalised in just several weeks.

Sources close to the matter said that Kraft Heinz is hoping to command a valuation for Oscar Mayer equivalent to about ten times its earnings before interest, taxes depreciation and amortisation, which stands at about $290 million.

Deal making in the CPG sector has been robust over the past year, as large snacking companies have grappled with lower demand due to the impact of high price inflation and weight-loss drugs.

In August, Mars agreed to buy Kellanova in August for nearly $36 billion, in what was one of the biggest packaged food deals of all time. Earlier this week, JM Smucker agreed to sell its Voortman cookie brand to Second Nature Brands for approximately $305 million, and last year, JM Smucker bought Twinkies maker Hostess Brands for $5.6 billion.

FoodBev has approached Kraft Heinz, Sigma and JBS for comment.