P&G – Divestment of Pringles to the Kel

Description Procter & Gamble Company announced an agreement to divest its Snacks business to The Kellogg Company in a $2.7 billion all-cash transaction in 2012. P&G’s Chairman said: “this is an excellent development for P&G, Pringles and Kellogg, creating value for our shareholders and representing an outstanding opportunity for Pringles employees with a leading company in the Food sector. Kellogg shares similar values and principles to us and we are confident that the Pringles business will thrive under Kellogg’s leadership.” Using the relevant analytical models (s), your task is divided into two level of analysis: the rationale of this divestment from P&G side and its strategic fit for Kellogg. As an initial primer to your assignment, you are provided with some short introductory short reading/reference sources: • P&G Website: https://news.pg.com/press-release/pg-corporate-announcements/procter-gamble-announces-agreement-divest-pringles-kellogg- • Reuters Website: https://www.reuters.com/article/us-kellogg-pringles/kellogg-to-buy-pringles-for-2-7-billion-idUSTRE81E0S620120215?feedName=topNews&feedType=RSS