Donald Trump’s victory in the U.S. presidential election has shifted the probability of Kraft Heinz Co KHC entering an acquisition deal in favor of General Mills, Inc. GIS or Kellogg Company K and away from Mondelez International Inc MDLZ, Citi analysts said in a report. They explained that Trump’s win signifies the likelihood of M&A activity focusing more on U.S.-centric assets as opposed to those outside the United States.
Investors interested in large-cap packaged food stocks are contemplating when Kraft Heinz will undertake another deal in the sector, and there has been a lot of debate around which company would be the next acquisition target.
“While our sense is that Mondelez is the consensus expectation, we think the probabilities have now shifted more towards General Mills and Kellogg given of the outcome of the U.S. Presidential election and the expected economic & fiscal policies on the horizon,” the analysts wrote. They added that all three choices would yield “substantial benefits.”
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