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June 5, 2017

Conagra, Pinnacle Foods ‘break off deal talks’

Conagra Brands has reportedly ended talks aimed at a possible takeover of US peer Pinnacle Foods after the two sides were said to have failed to agree on the terms of a deal.

Conagra Brands has reportedly ended talks aimed at a possible takeover of US peer Pinnacle Foods after the two sides were said to have failed to agree on the terms of a deal.

Reuters last week reported, quoting unnamed “sources familiar with the matter”, Conagra had made an approach to Pinnacle.

However, Reuters on Friday (2 June) said it had since learned from “a person familiar with the matter” that talks between the two companies were broken off “after failing to agree on a price”.

Broadcaster CNBC claimed in a separate report it had been told by sources that “Pinnacle’s expectations far exceeded what Conagra might have been willing to pay”.

“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,” according to CNBC.

Credit Suisse analyst Robert Moskow said following the initial report of deal talks that the move would lead to “enormous” synergies over time. Moskow said he thought Conagra would be “willing to pay a significant premium” to land Pinnacle.

A Conagra spokesperson told just-food last week: “We don’t comment on rumours or speculation.” Pinnacle did not respond to just-food’s invitation to comment on the reported talks.

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