- Fitch Ratings says it expects a merger between Hasbro (NASDAQ:HAS) and Mattel (NASDAQ:MAT) would lead to improved negotiating power for the combined entity with Target, Wal-Mart (NYSE:WMT) and Toys R Us -- which collectively account for about 38% of all sales from the toy sellers.
- "These retailers are constantly encouraging high levels of competition among suppliers, demanding innovative new products and exclusive products, leading to price reductions, and product delivery with shorter lead times," observes Fitch.
- Another important point on a potential Hasbro and Mattel deal is that the two have opposite strengths (Mattel with girls & Hasbro with boys).
- Related stocks: JAKK, OTC:SNMSF.
- Previously: Mattel +13.5% on WSJ report of Hasbro takeover approach (Nov. 10)
- Previously: Analysts dive in on Hasbro-Mattel potential (Nov. 13)
- Now read: Hasbro: Re-Evaluating The Stock, Recent Takeaways After Earnings
Original article