Lamb Weston Stock Soars Following Reuters' Report on Sale Talks with Post Holdings

Lamb Weston Holdings (NYSE:LW) shares rose by more than 4% following reports that Post Holdings (NYSE:POST) is considering a potential transaction with the company. This news comes at a time when leading frozen potato products manufacturer Lamb Weston is under pressure from an activist investor to sell itself. Jana, which holds a 5% stake in Lamb Weston, is advocating for the company’s sale.

Post Holdings, known for Grape Nuts cereal and Bob Evans mashed potatoes brands, has seen Lamb Weston as an attractive acquisition target since 2015, when the company was still under Conagra Brands (NYSE:CAG). Now that Lamb Weston operates independently, Post Holdings is reassessing the acquisition idea and working with investment bankers to evaluate a potential deal.

With a market capitalization of approximately $7 billion, Post Holdings' interest in Lamb Weston aligns with expected synergies that could arise from such a merger. Lamb Weston, with a market cap of around $10.5 billion, could provide significant benefits to Post Holdings if a merger or acquisition occurs.

While discussions between the two companies are ongoing and details remain confidential, the potential deal has already begun to influence market movements. Representatives from Post Holdings have declined to comment on the matter, and a spokesperson for Lamb Weston was not immediately available for comment.