Why Kellogg Decides to Split

Normally hard macroeconomic conditions force separate business entities to merge to save asset liquidations but Kellog is planning to split into three independent companies. Mostly this kind of split happens when top decision-makers have different opinions on growing the united businesses.

As the company says this portfolio transformation will allow each separated firm to focus on strengths and priorities. When Fed raised interest rates due to the high inflation these three companies may run out of cash and be forced to merge or be acquired by bigger players in upcoming quarters.

Surprisingly NYSE: K is spiking 7% but it could be a temporary bullish run. For previous quarters the stock could beat expected earnings for four consecutive quarters.

kellog stock

Helen Larsen

After a long week of holidays in 2020, Helen realized she can do better in reporting Finance and Business news for Own Snap. Right now she is our weekend reporter and author. Sometimes she is busy with her projects that are related to her Master's Degree in Finance.