Brazilian multi-billion dollar global investment firm 3G Capital is reportedly in advances talks to acquire American grocery manufacturing and processing conglomerate Kraft Foods.

Sources said the size of the deal would likely transform the industry and could be valued at more than USD40 billion. The deal could be announced soon.

The standing of the talks have not been revealed yet and analysts could not firmly say that a deal could be reached soon. There is also a possibilitt that the deal will not push through.

The price that the two sides are negotiating has not also been disclosed although analysts believe it could be at upwards of USD40 billion.

Kraft had a market value of roughly USD37 billion.

The Wall Street Journal previously reported that 3G was looking for targets after it recently raised some $5 billion for deal making.

The firm already has become a major player in the food sector.

Billionaire co-founder Jorge Paulo Lemann was a big shareholder in brewer InBev, and helped engineer its 2008 acquisition of Anheuser-Busch.

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