Food ETFs In Focus On Deal Wave

While many staples companies have been hard hit in the latest round of sector rotation, firms engaged in the production or distribution of food have held up better than most. These haven’t been as bid up as many of their consumer product counterparts, and more importantly, the space has seen a wave of M&A (mergers and acquisitions) activity take place as well.

In particular, Shauanghui of China announced a takeover of America’s leading pork producer Smithfield (SFD - Analyst Report). This $7 billion offer led to SFD shares jumping over 30%, pushing the stock to multi-year highs in the process.

Meanwhile, rumors of a similar takeover helped to boost Pilgrim’s Pride (PPC - Snapshot Report) in recent trading sessions too. In fact, in one day, the stock rose by over 20%, thanks in part to rumors, but also a sharp increase in price targets by an analyst as well. (more)

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