Heinz close to major Brazil tie-up-report

RIO DE JANEIRO Feb 25 (Reuters) - H.J. Heinz Co (HNZ.N) is in advanced stages of talks for an acquisition or merger in Brazil that could be worth up to 1 billion reais ($600 million), Brazil's Valor Economico newspaper reported on Friday.

Citing an executive with knowledge of the talks, Valor said Heinz planned to acquire or tie up with unlisted Brazilian food company Quero Alimentos, which has annual sales of about 600 million reais.

Heinz currently has no direct operations in Brazil, one of the world's fastest-growing emerging markets, and sells products such as its trademark ketchup through import distributors, Valor said.

Heinz Chief Executive Officer William Johnson said on Thursday that emerging markets would make up as much of a third of the company's sales in about five years.

"I have never seen more M&A opportunities in emerging markets than I am seeing now," he told the annual meeting of the Consumer Analyst Group of New York in Boca Raton, Florida.

Neither Heinz nor Quero Alimentos officials could immediately be reached for comment on the report.

($1=1.66 reais) (Reporting by Stuart Grudgings; Editing by Lisa Von Ahn)