Over the weekend, PepsiCo confirmed it would move its listing to the NASDAQ, ending a near 100-year relationship with the New York Stock Exchange. According to the NYSE, the group was originally listed as Loft Inc. with an initial listing date of 18 December 1919. PepsiCo’s shares will now start trading on the NASDAQ as of 20 December 2017, where it will join some of the world’s most valuable listed companies. The main reason for the move is PepsiCo’s anticipation that it will achieve greater cost-effectiveness and enjoy access to the NASDAQ’s unique portfolio of tools and services, which will assist the group in connecting with its investors more efficiently.
Yesterday saw semiconductor firm Broadcom announce better-than-expected results. During the 4th quarter, Broadcom saw net revenues increase to $4.84bn, surpassing analysts’ estimates of $4.83bn. This strong performance was partly due to its wired infrastructure unit, which makes chips for set-top boxes and cable modems. Overall, the group saw adjusted earnings come in at $4.59 per share, slightly higher than forecasts of $4.52 per share. Looking forward, Broadcom expects first quarter revenues to increase to $5.3bn, much better than expectations of $4.83bn. The group also increased its quarterly dividend to $1.75 per share, 72% higher than the $1.02 dividend declared previously.
On Monday, Nestle announced it would be acquiring Atrium Innovations for an amount of $2.3bn. Atrium Innovations is a maker of vitamins, probiotics and meal replacements and currently sources 80% of its $700mn in sales from the United States. From Nestle’s side, the deal aims to expand the group’s presence in consumer healthcare as well as offset weakness in packaged foods. The acquisition is in-line with Nestle’s ambition of becoming a nutrition, health and wellness company. Given Nestle’s decision to make consumer health a strategic priority, this marks the group’s fourth purchase in recent months.
Broadcom took its first formal step towards launching a hostile takeover for Qualcomm on Monday. In a statement, the chipmaker unveiled a list of 11 nominees to the board of Qualcomm. The nominees consist of nine men and two women and include a former president of Nokia and the former chairman of Dialog Semiconductor. This move comes after Qualcomm rejected Broadcom’s $103bn offer last month, with Broadcom now attempting to remove Qualcomm’s board in order to force the company to engage with it. Looking forward, Qualcomm’s shareholders will be able to vote on Broadcom’s board director slate at the group’s annual meeting on the 6th of March 2017.
On Sunday, US-based drugstore chain operator, CVS Health, announced it had agreed to acquire Aetna for $69bn. As a result, Aetna, a US-based health insurer, will see its shareholders receive $207 per share. Of this $207 per share, $145 per share will be in cash, while the rest of the offer will be in the form of 0.8378 CVS shares for each Aetna share. This sees Aetna owning around 22% of the combined company, while CVS shareholders will have the rest. If the deal is concluded, it will see one of the US’ largest pharmacy operators combine with one of the country’s oldest health insurers. The merger seeks to tackle the soaring costs of healthcare through lower-cost medial services in pharmacies.
Despite gaining more than 10% early on in the session, Kroger finally added 6.07% by the close to settle at $25.86 per share. This after it released better-than-expected results. During the 3rd quarter, Kroger recorded a 4.5% increase in total revenues to $27.75bn, topping estimates of $27.46bn. Kroger net earnings grew to $397mn, or 44 cents per share, up from $391mn, or 41 cents per share, a year ago. As a result, this surpassed analysts’ forecasts of 40 cents per share. Looking forward, Kroger has forecast same-store sales set to increase by more than 1.1% in the 4th quarter, supported by a revamp in its business.