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Packaged Food Stocks Strong As Investors Show Interest In 3G Report

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Packaged Food Stocks Strong As Investors Show Interest In 3G Report

There is a strong interest in packaged food shares following a report that 3G is raising $8 billion–$10 billion from potential investors. The money is expected to fund the next acquisition target, according to Brazil Journal.

While 3G has not indicated a specific target, the focus is said to be within the consumer sector.

CNBC reported in July that Kellogg Company (NYSE: K) was rumored to be in negotiations to sell itself to Kraft Heinz Co (NASDAQ: KHC). However, the same report indicated that a deal between them was unlikely in the immediate term.

3G has specialized in brokering mergers within the packaged food sector, having been involved in past deals such as the Kraft–Heinz merger in 2015.

Funding

The report indicated that about 10 Brazil-based investors have each committed to investing a minimum of $100 million. For those who proposed commitments between $20 million and $50 million, 3G "politely declined."

Confidence among the investors appears to be strong, as those who took part in earlier fundraising got back their capital and still have about 3–4 times the capital invested.

With the latest news, packaged food sector stocks are gaining ground on the possibility that any firm could be a takeover target.

At last check:

  • General Mills, Inc. (NYSE: GIS) was up 3.02 percent at $63.70.
  • Hershey Co (NYSE: HSY) was up 0.54 percent at $102.15.
  • Kellogg was up 3.23 percent at $77.37.
  • Kraft Heinz was up 3.18 percent at $88.77.
  • Mondelez International Inc (NASDAQ: MDLZ) was up 4.55 percent at $46.34.
 

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