Is Further Consumer Staples Consolidation Coming?: Campbell Soup Company (CPB) and More

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The bottom line

Whether we’re entering a new golden age for mergers and acquisitions is unclear.  Investment banking activity has resumed to a significant degree, and with boatloads of cash sitting on corporate balance sheets, it’s certainly possible that Jim Cramer and others are correct.  All that cash earning nothing for shareholders could be better served being used to make accretive acquisitions.

Warren Buffett recently stated that he’s ready to make even further acquisitions to add to his Berkshire Hathaway portfolio.  Both Campbell Soup and Hormel have qualities in common with Heinz—namely, long histories of success, well-known and powerful brands, and consistent cash flow generation.  Each could be an interesting target for either Berkshire or a consumer staples giant, and it’s worthwhile for investors to keep an eye on going forward.

The article Is Further Consumer Staples Consolidation Coming? originally appeared on Fool.com and is written by Robert Ciura.

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