KRAFT SHEDDING POST CEREALS BUSINESS

Private-label cereal maker Ralcorp Holdings Inc. said Thursday it will purchase Kraft Foods Inc.'s Post cereals unit, the nation's third largest with brands like Spoon Size Shredded Wheat and Post Raisin Bran.

The companies said the deal includes Ralcorp stock valued at about $1.65 billion. Ralcorp will also assume $950 million in debt, boosting the total deal value to $2.6 billion.