Markets

Kellogg to Buy Pringles from P&G for $2.7 Billion (K, PG)

Packaged foods maker Kellogg Company ( K ) on Wednesday announced it would buy canned potato crisp maker Pringles from The Procter & Gamble Company ( PG ).

The $2.7 billion cash deal will bolster Kellogg's positioning in the global snack foods market. The company seeks to build its presence in that arena to a similar to its strength in the cereal business.

Previously, P&G had agreed to Pringles to embattled snacks maker Diamond Foods ( DMND ) in 2011. However, that deal was nixed due to federal probes into Diamond's suspect accounting practices.

Kellogg shares rose $1.18, or +3.2%, in premarket trading Wednesday, while Procter & Gamble shares were mostly flat.

The Bottom Line

Shares of Kellogg ( K ) have a 3.42% dividend yield, based on last night's closing stock price of $50.82. The stock has technical support in the $46-$48 price area. If the shares can firm up, we see overhead resistance around the $51-$52 price levels. Shares of Procter & Gamble ( PG ) have a 3.26% dividend yield, based on last night's closing stock price of $64.48. The stock has technical support in the $62-$64 price area. If the shares can firm up, we see overhead resistance around the $68-$70 price level.

Kellogg Company ( K ) and The Procter & Gamble Company ( PG ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

PG K

Other Topics

Stocks