Phillips 66 has announced the sale of its 49% stake in Coop Mineraloel AG (CMA) to its Swiss joint venture partner for $1.24 billion. The transaction, expected to close in Q1 2025, will support Phillips 66’s strategic priorities, including shareholder returns. The sale price is subject to adjustments based on the dividend amount. PSX shares are trading lower on Tuesday following the announcement.
Conagra Brands continues its strategic transformation by divesting its stake in Agro Tech Foods. This move aims to enhance shareholder value and refine its portfolio. The company also highlights its focus on innovation and expansion into adjacent categories through acquisitions. While navigating industry challenges like consumption slowdown and cost inflation, Conagra’s strong performance in the International segment and market share gains in frozen and snacks categories offer hope for the future.
Occidental Petroleum Corporation (OXY) announced a significant $3 billion reduction in its principal debt during the third quarter of 2024, driven by strong cash flow and divestiture proceeds. This achievement puts the company on track to meet its near-term debt reduction target of $4.5 billion, with approximately 85% already accomplished. The company is actively pursuing its deleveraging strategy through both asset sales and free cash flow generation.
Canada’s Competition Bureau has expressed concerns over Bunge’s planned acquisition of Viterra, citing reduced competition in the grain and canola markets. This may require the companies to divest assets to gain regulatory approval. One possibility is that Bunge could sell its minority stake in G3, a Viterra competitor, and a Western Canadian canola-crushing plant. Louis Dreyfus, Richardson International, and Cargill are potential buyers of these assets due to their existing canola-crushing capacity and grain-handling operations.
Kroger and Albertsons have agreed to sell an additional 166 stores to C&S Wholesale Grocers in an effort to address the Federal Trade Commission’s (FTC) concerns about the merger. The total number of stores sold to C&S will now be 579, ensuring that no storefronts will close, no employees will lose their jobs, and no employee benefits will change upon the merger’s completion. The FTC is currently reviewing the revised divestiture deal and has not yet commented on whether or not it will affect its decision to allow the merger to proceed.
Policy analyst Ed Mills anticipates that TikTok may cease operations in the U.S. next year due to a bill that aims to force the divestment of the popular social media platform. The bill, which has passed the U.S. House of Representatives, proposes that TikTok must be sold within a year or face a ban from U.S. app stores. If the bill is passed by the Senate, TikTok would be forced to sell its U.S. operations to an American company, effectively ending its presence in the country.
