Dive Brief:
- Investment firm 3G Capital Partners LP is eyeing another food industry takeover target, and Campbell Soup Co and PepsiCo Inc are two possible front-runners.
- Neither company has commented on any acquisition plans.
- Both Campbell and PepsiCo showed market gains following news of the potential acquisitions.
Dive Insight:
3G investors accrued $5 billion for a new takeover fund, which reportedly will target major food companies. According to the Wall Street Journal, another possible takeover could be just parts of PepsiCo or a partnership with Anheuser-Busch InBev. In October 2014, speculation circulated that AB InBev might acquire PepsiCo, which seems to indicate that PepsiCo, the world's second-largest soda maker, is in a position to be taken over by another food/beverage company or investment firm. Campbell is another appetizing target for 3G, as it reported a 6% sales increase for soups in its most recent quarter, which led to an 8% increase for the company's core products, including soups and canned chicken.