Conagra Gets One Step Closer to Acquiring Pinnacle Foods
Pinnacle Foods and Conagra shares were relatively muted on Monday despite making another pivotal step to closing the acquisition of the former.
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Pinnacle Foods Inc. (NYSE: PF) and Conagra Brands, Inc. (NYSE: CAG) shares were relatively muted on Monday despite making another pivotal step to closing their tie-up.
Essentially, the firms received a “no-action letter” from the Canadian Competition Bureau confirming that the Commissioner of Competition does not intend to challenge Conagra Brands’ acquisition of Pinnacle Foods.
The receipt of the “no-action letter” satisfies one of the conditions necessary for completion of this transaction. The transaction is expected to close by the end of calendar year 2018 and is subject to other customary closing conditions.
The deal was announced back in June 2018, in which Conagra Brands will acquire all outstanding shares of Pinnacle Foods in a cash and stock transaction valued at approximately $10.9 billion, including Pinnacle Foods’ outstanding net debt.
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Under the terms of the transaction, Pinnacle Foods shareholders will receive $43.11 per share in cash and 0.6494 shares of Conagra Brands common stock for each share of Pinnacle Foods held. The implied price of $68.00 per Pinnacle Foods share is based on the volume-weighted average price of Conagra Brands’ stock for the five days ended June 21, 2018.
Shares of Pinnacle Foods were last seen at $66.63, with a consensus analyst price target of $68.75 and a 52-week trading range of $52.25 to $70.51.
Conagra was last seen trading at $36.73 a share, with a consensus price target of $42.82 and a 52-week range of $32.16 to $39.43.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
