3 Hot Takeover Targets In The Food And Beverage Industry
Coca-Cola's (NYSE: KO) announcement last week that it had acquired a $2.15 billion, 16.7 percent stake in Monster Beverage (NASDAQ: MNST) pairs the biggest soda company in the world with the biggest energy drink brand in the United States.
Investor Reaction Positive
The deal, two years after the two companies almost struck a similar deal, was positively received by shareholders of both companies as well as investors who helped boost stock prices shortly after the announcement.
Related Link: Will Publix Try To Acquire Whole Foods?
Keurig Green Mountain
Both companies have been working together to develop a machine that will let consumers make their own Coke-branded soda.
Monster and Keurig are not the only food and beverage companies potentially ripe for investment or acquisition; Coca-Cola isn't the only major player poised to take action.
So who's next?
1. Campbell Soup (NYSE: CPB)
Warren Buffet’s Berkshire Hathaway already owns a 50 percent share of ketchup maker, Heinz. Bloomberg suggested the Omaha Oracle might also be interested in soup maker Campbell if the price was right.
2. SABMiller (OTC: SBMRY)
Following InBev’s $52 billion takeover of Anheuser-Busch six years ago, talk that Anheuser-Busch InBev could make a play for another major rival has been a recurring discussion point among insiders.
3. Kraft Foods (NASDAQ: KRFT)
According to Cramer, Coca-Cola would be the most logical acquirer of the Northfield, Illinois, company that posted revenue of $18.2 billion in 2013.
Kraft shares have traded between $50 and $61 over the past year and the company has a market cap of $33.3 billion.
At the time of this writing, Jim Probasco had no position in any mentioned securities.
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