Mars Acquires Pet Food Brands from P&G for $2.9 Billion

Nichole Harper
09 Apr, 2014
New York City

Stocks on Wall Street advanced for the second day in a row and market indexes in Europe gained. India attracted $10.3 billion fund flows in the year so far. Market indexes in Tokyo plunged more than 2%. Mars agreed to acquire three pet-care brands from Procter & Gamble for $2.9 billion in cash.

[R]1:35 PM New York – Stocks on Wall Street advanced for the second day in a row and market indexes in Europe gained. India attracted $10.3 billion fund flows in the year so far. Market indexes in Tokyo plunged more than 2%. Mars agreed to acquire three pet-care brands from Procter & Gamble for $2.9 billion in cash.[/R]

Stocks on Wall Street advanced for the second day after tech stocks recovered from a three-day slump that saw nearly 15% plunge in many large cap stocks in the sector.

S&P 500 index increased 0.4% or 7.73 to 1,859.69 and the Nasdaq Composite Index gained 0.9% or 37.29 to 4,149.68.

Mars Inc agreed to acquire three pet-food brands from Procter & Gamble Co. for $2.9 billion.

The acquisition of the Iams, Eukanuba and Natura brands will extend the portfolio that includes Pedigree, Whiskas and Royal Canin. The purchase will strengthen the Mars’ position in pet-food business and increase pressure on Nestle SA, the owner of Purina.

World Markets

In London trading, FTSE 100 index jumped 0.7% or 46.60 to 6,637.29 and in Frankfurt the DAX index rose 0.2% or 17.31 to 9,508.10.

In Paris, CAC 40 index gained 0.4% or 19.30 to 4,444.13.

The Nikkei 225 Stock Average plummeted 307.19 or 2.1% to 14,299.69 and the Topix index declined 24.12 or 2% to 1,150.44.

The Topix index has declined 5.5% from April 3 and the index rose for nine days in a row before.

The yen decreased 0.2% to 102.04 against the U.S. dollar.

Rupee in India advanced after global funds added $10.3 billion into local stock exchanges, according to the latest data released by the exchanges and ministry of finance.

Rupee closed nearly unchanged at 60.13 and three-month forward advanced 0.3% to 61.31 against one dollar.

U.S. Stocks in Review

Alcoa Inc ((AA)) climbed 4.5% or 57 cents to $13.10 after the aluminum producer reported sales in the first-quarter ending in March declined 6.5% to $5.45 billion.

Net in the quarter swung to a loss $178 million or 16 cents a diluted share compared to a profit of $149 million or 13 cents.

The company also said the industry demand is ahead of global production for the first time in nearly a decade.

Constellation Brands, Inc ((STZ)) dropped 2.8% or $2.41 to $79.07 after the wine company said revenue in the fourth-quarter ending in February surged 85.5% to $1.29 billion.

Net income in the quarter soared 92.4% to $157.2 million or 73 cents a diluted share compared to $81.7 million or 39 cents.

Mars, Inc, the confectionery maker agrees to acquire IAMS, EUKANUBA, and NATURA brands for $2.9 Billion in cash from The Procter & Gamble Company to complement its large and growing pet care business.

The companies expect to complete the transaction in the second-half of 2014.

The Procter & Gamble Company ((PG)) increased 1 cent to $81.36 and the company will restate its 2013 earnings by 3 cents and lower its 2014 earnings by 4 cents after the sale of three pet-food brands.