Earnings PerformanceK's recently reported earnings per share missed consensus estimates due to a shortfall in organic sales growth and a gross margin miss.
Regulatory ConcernsThe 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.
Stock Price RiskIf the deal were to be outright rejected by the EC, the downside risk to the stock price could be as high as ~35%.