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
Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.
Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.
The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.