Rumors of General Mills Takeover by Nestle
Tuesday, April 26, 2011
From Wheaties to Betty Crocker, General Mills has built quite a name for itself in Minnesota and, according to business rumors, Nestle may be in line to purchase the company.
"There's been rumors in Wall Street going back a year or so that Nestle was interested in buying General Mills," said University of St. Thomas' Dr. David Vang.
"Part of what Nestle is buying is the brand because it has so much name recognition and on net I think this might be good for Minnesota as I said Nestle is so much larger than General Mills there could be even more resources available," said Vang.
"It appears that General Mills has been highly profitable even with their generous benefit packages, probably a good example to look at would be General Electric," explained Vang. "They have acquired many companies over the years and it seems like their strategy frequently has been to let these companies that they acquire keep their benefit packages for a substantial amount of time before they start equalizing and consolidating."
Originally published: 04/26/2011, KARE 11 News