ST. LOUIS (KMOX) – With Panera Bread’s pending acquisition, should St. Louisans be worried about job losses? One business analyst says not right now.
Alex Sherman writes about mergers and acquisitions for Bloomberg. He says JAB Holdings will leave Panera’s structure intact, but the purchase could offer some benefits.
“A lot of times you can take advantage of sort of the same sales channels or distribution channels, and that’s why some of these conglomerates tend to grow like this, and there are other sorts of cost savings you get by growing in scale,” he says.
Sherman says the holding companies are trying to compete financially with the bigger companies like McDonald’s.
He says Panera isn’t merging into another restaurant, so the chances for massive layoffs are lower.
The $7.5 billion deal is expected to close by the end of the third quarter.