Acquisition RiskIf the deal were to be outright rejected by the EC, the downside risk to the stock price could be as high as ~35%.
Market PerformanceIf K’s multiple declines as GIS, PEP, and UTZ have since last August, K’s share price could fall to as low as $54 from its proposed acquisition price of $83.50.
Regulatory InvestigationThe European Commission announced an investigation into the proposed K/Mars transaction, citing concerns about the potential JointCo’s expanded share of store, which could increase bargaining power when negotiating pricing with retailers.