TOP NEWS
* Diageo PLC has commenced an auction of some of its U.S.-focused spirits brands in a sale that could be worth a combined total of $500 million to $1 billion, Sky News reported May 24, citing insiders. Diageo reportedly plans to divest a number of its noncore brands, including Goldschlager, Myer's Rum, Popov and Romana. The British alcoholic beverage company is keen on selling the portfolio in a single transaction, the news outlet said. One of the sources reportedly told Sky News that Diageo has engaged New York-based investment bank Centerview Partners to handle the sale.
* McDonald's Corp. shareholders rejected a proposal that asked the fast-food chain to furnish a report detailing business risks of using plastic straws. At the company's annual meeting, less than 8% of the votes favored the move by a consumer group that may have paved a way for the withdrawal of plastic straws. The company's board recommended the shareholders to vote against the proposal, according to a filing.
FOOD RETAIL AND DISTRIBUTION
* X5 Retail Group NV said it plans to open at least 110 new stores in four Russian regions by 2020. The plan is part of an agreement the Russian food retailer entered into with the regions of Leningrad, Vologda and Yaroslavl and Republic of Karelia. The planned developments are expected to create over 2,000 jobs.
* Food retailer FamilyMart UNY Holdings Co. Ltd.'s board approved the sale of Uny Co. Ltd.'s Hong Kong unit to Urban Kirin Ltd., a subsidiary of Hong Kong real estate company Henderson Land Development Co. Ltd. for HK$300 million, according to separate company announcements. Pursuant to the agreement, Uny will grant Urban Kirin an exclusive right and license to use certain trademarks across its Hong Kong stores for 10 years. The two will also enter into a master supply agreement for Uny's supply of certain products from Japan to Uny Hong Kong.
BEVERAGES
* Pernod Ricard SA, a French distiller, inked a deal with Singapore-based Yoma Strategic Holdings Ltd. to take charge of Myanmar's leading whiskey brand and produce and distribute alcoholic drinks in the Southeast Asian country, The Financial Times reported. Under the agreement, the French company will partner with Yoma, Delta Capital Myanmar and U Htun Win and U Zaw Win, brothers who own a large distillery and glass factory, according to the report. The financial details of the deal were not disclosed.
AGRICULTURAL PRODUCTS
* Wilmar International Ltd.'s wholly owned subsidiary Wii Pte. Ltd. secured a $1.50 billion syndicated loan facility May 23, according to a news release. The Singapore-based agribusiness said the facility will be used to refinance existing debt and for general corporate purposes.
PACKAGED FOODS
* Ohio-based Spangler Candy Co. acquired the embattled the New England Confectionery Co. Inc., the maker of NECCO, for $18.8 million at the bankruptcy auction, The Wall Street Journal reported. The deal is expected to close May 25.
* Hormel Foods Corp. said Don Kremin retired as group vice president of the specialty foods division. Kremin joined the company in 1984 and held various management and leadership positions in the grocery products, consumer products sales and specialty foods businesses.
* Private equity firm KKR & Co. LP and French food products company Danone are among the bidders looking to acquire GlaxoSmithKline PLC's 72.5% stake in its Indian consumer products division GlaxoSmithKline Consumer Healthcare Ltd., The Economic Times (India) reported. Other companies looking to acquire the stake include Nestlé SA, PepsiCo Inc., Abbott Laboratories, ITC Ltd., The Unilever Group's Hindustan Unilever Ltd. and Mondelez International Inc. GSK's nutrition brands, including Horlicks and Boost, are licensed and distributed through GlaxoSmithKline Consumer Healthcare.
* Sweden-based packaging giant AB Tetra Pak is set to launch a campaign for politicians and regulators about the benefits of plastic straws, despite vowing last month to launch paper straws for its juice cartons by 2018 end, The Financial Times reported. A company spokeswoman denied conflict in its messages, claiming the company was working "full speed" on paper straws, FT added.
* Stop & Shop voluntarily recalled 16-ounce packages of frozen broccoli cuts in South Windsor after the department of consumer protection's foods and standards division detected Listeria monocytogenes in a sample during routine surveillance. The product, which has a best by date of March 15, 2020, can be returned for a full refund.
* British pork exports to China saw an increase of four times after the country started allowing shipments in 2012 to meet the burgeoning demand, Bloomberg reported. China, which is world's biggest meat consumer, is likely to gain more significance as Brexit talks unfold, the report added.
RESTAURANTS
* Illinois-based McDonald's Corp.'s board announced a quarterly cash dividend of $1.01 per share. The company will pay the dividend June 18 to shareholders of record, at the close of business June 4, according to the release.
* Burrito chain Chipotle Mexican Grill Inc. is adding drive-through lanes at its stores in Ohio, Tennessee, Texas and Massachusetts, CNBC reported. These drive-thru windows will let the customers stay in their cars after ordering through the app or online platform. However, customers can not order through a microphone and pick up like typical lanes, the report added.
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The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Hang Seng declined 0.56% to 30,588.04, while the Nikkei 225 increased 0.6% to 22,450.79.
In Europe, around midday, the FTSE 100 was up 0.24% to 7,736.44, and the Euronext 100 was up 0.46% to 1,077.21.
On the macro front
The durable goods orders report, two-year FRN note settlement report and the Baker-Hughes Rig Count report are due out today.
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