American cereal giant Kellogg announced Tuesday it is splitting into three independent companies, sending the group’s shares up by eight percent in pre-market trading.
One of the new firms will be focused on global snacks and North American frozen breakfasts, a second on cereal sales in North America and the Caribbean, and a third will specialize in plant-based foods, the group said in a statement.
The yet-to-be-named entities will initially be known as Global Snacking Co., North America Cereal Co., and Plant Co. The latter two will be created through tax-free spin-offs.
Kellogg is aiming to complete the split by late 2023, subject to approval by US regulators.
“These businesses all have significant standalone potential,” Kellogg’s chairman and CEO Steve Cahillane said in a statement.
“An enhanced focus will enable them to better direct their resources toward their distinct strategic priorities,” he said.
The giant behind such household names as Corn Flakes and Rice Krispies said North American Cereal and Plant Co. would remain headquartered in Battle Creek, Michigan.
The Global Snacking will have dual headquarters — in Battle Creek and Chicago.
Kellogg announces split into three separate companies - Susan DeMalio - Aug 27, 2022 5:25 am
If anyone thinks this is in the best interests for consumers, they’re sadly misinformed and gullible. GULLIBLE!!!
Corporations do this for THEIR bottom line.
Busting up into smaller divisions is meant to divide the union.
Busting up into smaller divisions is meant to increase their profits.
Busting up will NOT lower end user pricing.
More jobs? Laughable.
Most production is AUTOMATED!!!
No payroll…no payroll taxes.
It’s not “illegals” taking jobs…the automation takes jobs.
Corporations write off the equipment all in one fell swoop. Big $$$ savings for them.
Stop glorifying these big corporations as saviors of the economy. They don’t give a s**t about anyone other than their shareholders.
EDITED for EMPHASIS.