Ben Kellerman joined Breakingviews in 2015 as the New York-based research assistant. He previously worked as an analyst with Thomson Reuters Point Carbon, where he tracked North American emissions trading and climate policy. Ben graduated from New York University with a degree in international relations and environmental studies.
Investors are warming to the devil’s lettuce. The action is mostly in Canada, which has over $25 bln of listed cannabis stocks, and rising volumes of M&A. But the U.S. is positioned to provide the metaphorical pickaxes, and big consumer brands will be watching for legal changes.
With an agreed $10.9 bln purchase of Pinnacle, Sean Connolly seals the deal on a takeover of the motley crew of slow-growth grocery goods he has pursued since 2014, when he ran Hillshire. But it’s a high price and ambitious cost cuts don’t cover the premium he’s paying.
The $15 bln owner of Hebrew National and Reddi-wip could tie up with smaller rival Pinnacle after hedge fund Jana has come calling. Bulking up is one way to fight slow growth as consumers shift from processed fare. But justifying a deal requires cost cuts which may be a stretch.