Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Mondelez International Inc (MDLZ), Tiffany & Co. (TIF): How to Profit From the Upcoming M&A Boom?

Page 1 of 2

In spite of low interest rates, rising equity prices, and general economic improvement, mergers and acquisition activity has remained relatively weak for the past few years. Although we have seen a few deals surface this week, we, at Valuentum, believe activity could accelerate in the coming months, especially if companies begin to recognize the possibility of rising interest rates, as outlined in the following piece: “The Impact of the US Housing Recovery Cannot Be Underestimated.” Let’s take a look at some possible targets.

Mondelez International Inc (NASDAQ:MDLZ)

After going public via a spin-off from Kraft Foods Group Inc (NASDAQ:KRFT) just last year, Mondelez International Inc (NASDAQ:MDLZ) has already garnered attention as an acquisition target. Given the simplicity and historical legacy of many of its brands, including Nabisco, Oreo, Cadbury, and Trident, as well as the company’s exposure to emerging markets, we believe the company will garner a lot of attention from suitors for a potential merger.

Mondelez International Inc (NASDAQ:MDLZ)

Over the course of history, the brands of Kraft Foods Group Inc (NASDAQ:KRFT) and Nabisco have been favorite acquisition targets. In fact, Kraft itself began as a roll-up strategy. We don’t anticipate that former owner Altria Group Inc (NYSE:MO) will be interested in making a bid, but we do believe snack and beverage giant PepsiCo, Inc. (NYSE:PEP) could be a suitor. In our view, several synergies exist between PepsiCo, Inc. (NYSE:PEP)’s enormous Frito-Lay snack business and Mondelez International Inc (NASDAQ:MDLZ)International Inc (NASDAQ:MDLZ). CEO Irene Rosenfeld used to hold the chief executive position at Frito-Lay, making negotiations likely to occur. More importantly, we think Pepsi has an expertise in the emerging markets that Mondelez International Inc (NASDAQ:MDLZ) relies upon for growth.

Of course, an acquisition of Mondelez International Inc (NASDAQ:MDLZ) would be nothing short of a blockbuster for Pepsi. Even the “smaller” Mondelez International Inc (NASDAQ:MDLZ) currently sports an enterprise value of $71 billion. Any deal for the company would likely require a substantial equity portion. Still, shares of Pepsi have lagged both the S&P 500 and the Dow, suggesting a bold move could be in order.

Tiffany & Co. (NYSE:TIF)

Consolidation is a long-term trend in the luxury space, and American retailer Tiffany & Co. (NYSE:TIF) looks like it could be next. With an enterprise value of $10 billion, Tiffany & Co. (NYSE:TIF) is small relative to its European peers, and it has not pursued the same conglomerate-like growth strategy.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!