3 M&A Deals That Could Happen in the Next Six Months

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M&A - 3 M&A Deals That Could Happen in the Next Six Months

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2017 was said to be the year of the buyout, and so far, it appears that the M&A prediction is coming true. Last year’s market saw several industries struggling and left some solid companies beaten down. That put them in a vulnerable position as some of their more stable competitors looked for ways to profit from the challenging environment.

3 M&A Deals That Could Happen in the Next Six Months: SHOP PNRA WFM

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Not only have market conditions made buyouts look much more enticing, but the Donald Trump administration’s promises to lower corporate taxes and reduce regulations have also given some companies more incentive to look for takeover targets.

Over the next six months, a flurry of M&A activity is possible, especially in sectors where some companies are struggling.

Panera Bread Co (NASDAQ:PNRA), Shopify Inc (US) (NYSE:SHOP) and Whole Foods Market, Inc. (NYSE:WFM) are all potential takeover targets that may be bought up by rivals this summer if the rumors are to be believed.

M&A Deals That Might Be Coming: Panera Bread (PNRA)

M&A Deals That Might be Coming: Panera Bread (PNRA)

Earlier this month, PNRA shares made their way significantly higher on reports that the firm was considering a sale. Panera agreed to a $7.5 billion bid from Krispy Kreme owner JAB on April 4, but it appears that JAB isn’t the only suitor.

Burger King parent 3G Capital has also expressed interest in the fast-casual sandwich chain and could be mulling over a rival bid.

The talk of a bidding war over PNRA has led many to wonder whether or not there could be other suitors. Coffee giant Starbucks Corporation (NASDAQ:SBUX) has also been tossed around as a potential buyer, though no comments from SBUX management have confirmed this idea.

For the moment, JAB is the only one with its hat in the ring, but I wouldn’t be surprised if at least one other buyer makes an offer before the deal closes.

M&A Deals That Might Be Coming: Shopify (SHOP)

Next Page M&A Deals That Might be Coming: Shopify (SHOP)

Shopify’s cloud-based e-commerce business has also become the subject of some takeover rumors over the past month, leading investors to name everyone from Amazon.com, Inc. (NASDAQ:AMZN) to Salesforce.com, Inc. (NYSE:CRM) as potential buyers. At the moment, the SHOP M&A talk is just chatter, but the firm does have the makings of a very appealing target.

Shopify would be a valuable addition to its larger peers because the firm offers a high-growth enterprise that is still small enough to be bought without too much regulatory interference. Many believe that AMZN would benefit from adding SHOP to its umbrella because of the ties both companies have already forged through Amazon Marketplace.

On May 2, SHOP will release its first-quarter results, giving investors and potential suitors a better picture of the firm’s operations. If a takeover bid is coming, investors can expect to see it following that release or not at all.

M&A Deals That Might Be Coming: Whole Foods Market (WFM)

Next Page M&A Deals That Might be Coming: Whole Foods Market (WFM)

Organic grocery chain Whole Foods Market has been through the wringer over the past year as rising competition in the natural foods space has ramped up. WFM has struggled to shed its image of being overpriced despite efforts to offer discount schemes and customer loyalty programs.

However, other grocery store chains looking to improve their businesses and grab marketshare in an industry that has seen a great deal of consolidation may use a dip to scoop up WFM at a discount.

Albertsons, Amazon and Kroger Co (NYSE:KR) have all been named as potential suitors, which has helped WFM stock gain 27% over the past month.

For now, WFM is likely still a bit expensive to be considered a prime takeover target, but if the company continues to struggle with its turnaround plans and its share price loses more ground, investors can expect to see some of the aforementioned companies coming forward with bids.

As of this writing, Laura Hoy was long AAPL and SBUX.

Marie Brodbeck has a Finance degree from Duquesne University and has been a financial journalist for more than a decade. Her work can be seen in a variety of publications including InvestorPlace, Benzinga, Yahoo Finance and CCN.


Article printed from InvestorPlace Media, https://investorplace.com/2017/04/ma-buyouts-shop-wfm-pnra/.

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