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Kraft Restrict M & A Case Study

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Can Kraft be bought by some other company? Once the proxy statement is released by Kraft, it will become known if the company ran some process to sell the company. If it did, then there is a very less chance for another buyer to come in at this point of time. If the company did not run a process then there is a possibility that there might be some other company interested in buying Kraft. There are very few companies that are comparable in size to Kraft to initiate its buying. Possibilities can be seen limited to Nestle, Coca-Cola and PepsiCo. Mondelez is an unlikely partner as it used to be a part of Kraft. Few firms would like to bid against Berkshire Hathaway so that is also ruled out. Also, Kraft is trading at a premium if its multiples are observed – 16.9x expected 2016 EBITDA with no synergies assumed. Thus any buyer would have to buy Kraft at a high price which may not prove so beneficial for the …show more content…

Competitors include large national and international companies and numerous local and regional companies. We also compete with generic products and retailer brands, wholesalers, and cooperatives.” 10-K filing of Heinz “The products of the Company are sold under highly competitive conditions, with many large and small competitors. The Company regards its principal competition to be other manufacturers of prepared foods, including branded retail products, foodservice products and private label products, that compete with the Company for consumer preference, distribution, shelf space and merchandising support.” If both of these are looked at, nowhere is the other company mentioned as being a competitor of other company. Due to this it can be ascertained that the companies do not take the other company to be a

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