Discussions that may have led to a potential deal between Conagra and Pinnacle Foods have come to a conclusion, sources told CNBC.
These people familiar with the matter say Conagra, the owner of Reddi-wip whipped cream, and Pinnacle, which owns brands such as Duncan Hines, spoke weeks ago about a possible combination but have no plans to revisit the issue.
Conagra and its smaller rival were unable to agree on a price, a person familiar with the deal said, adding that Pinnacle’s expectations far exceeded what Conagra might have been willing to pay.
On Wednesday, Reuters reported there were deal talks between the two, which sent Pinnacle shares soaring.
Representatives from Conagra and Pinnacle declined to speak on speculation.
This isn’t the first food-and-beverage deal to go bust in recent months, either. Earlier this year, for example, Unilever rejected Kraft Heinz’s merger pursuit.
Additionally, packaged food companies like Conagra and Pinnacle have been under increasing pressure by grocers, including big-box players such as Wal-Mart, to keep prices low for budget-conscious consumers.
This has made for a tough time in the packaged goods space, as shoppers are also seeking healthier, fresher foods in stores, and are buying fewer processed goods from the center of the store and the frozen food aisle.
Chicago, Illinois-based Conagra has been trying to reinvent itself since it sold its private-label unit for $2.7 billion in 2016, in what was seen as an attempt to focus on its branded food business.
Pinnacle shares were falling a little more than 7 percent Friday morning on news that the deal with Conagra wouldn’t go through. Meanwhile, shares of Conagra were falling around 2.3 percent, and the stock is down a little more than 5 percent over the past 3 months.
Pinnacle’s stock has seen gains of a little more than 5 percent for the three-month period.
By David Faber and Leanne Miller
Source: CNBC
Consumer healthcare firm Haleon has appointed Tate & Lyle executive Dawn Allen as its new chief financial officer, effective 1 November 2024. Allen will succeed Tobias Hestler, who has decided to step down from the role, citing a long-term health condition, the company said.
The group said that the bottling line, which adds 6,500 square metres to the existing 60,700-square-metre site, is the next necessary stage in the company’s international development. The leading brand in Campari Group’s global sales, demand for the Italian bitter apéritif has grown by 500% in the last decade.
The partnership will see Coca-Cola adopt new technology to foster innovation and productivity globally. Through the deal, Coca-Cola has made a $1.1 billion commitment to the Microsoft Cloud and its generative AI capabilities.
