I saw the rumors about Kraft Heinz (KHC) buying Campbell Soup (CPB) last month and thought: "That makes a lot of sense." Judging by the reactions in subsequent Seeking Alpha articles and comments, I hold the minority viewpoint here. So let's walk through the case for why Kraft Heinz should buy Campbell Soup now.
Campbell Would Expand Kraft Heinz's Reach
The first argument that the deal's skeptics make is that Campbell would do little to broaden Kraft Heinz's appeal. Previously, Kraft Heinz had spoken about building a more international platform. With the substantial majority of Campbell's sales in the U.S., this is a valid point. Kraft Heinz's past overtures for Mondelez (MDLZ) made more sense from an international standpoint, given that company's more global reach.
