Philippines-based Del Monte Pacific Ltd would be buying US-based Del Monte Foods Co for a purchase price of USD 1.68 billion. Both companies are not affiliated with each other. The acquisition would enable the Philippine pineapple, tomato and fruit juice maker to expand its business in the world's largest economy.

In a statement, San Francisco-based Del Monte Foods said the deal would give Del Monte Pacific rights to its brands. These include Del Monte, Contadina, S&W and College Inn Brands. Del Monte Pacific already holds licenses for some of the said brands in certain Asian countries.

Del Monte Foods would be represented by Simpson Thacher & Bartlett. Kramer Levin Naftalis & Frankel would represent the Philippines-based company.

For the fourth consecutive month in August, consumer spending had risen in the US, Bloomberg reported. The acquisition would enable Del Monte Pacific to have access to Wal-Mart Stores Inc, one of the customers of the US-based firm. Del Monte Foods has annual sales of USD 1.8 billion.