EUR: PepsiCo gains EU green light for PBG, PepsiAmericas buys

27 October 2009 | Source: just-drinks.com editorial team

The European Commission has approved PepsiCo's proposed purchases of two of its major bottlers, PepsiAmericas and Pepsi Bottling Group.

The Commission said earlier today (27 August) that the transactions, lined up in August, "would not significantly impede effective competition in the European Economic Area or any substantial part of it".

When considering the Pepsi Bottling Group (PBG) transaction, the Commission noted that "the parties' activities only overlap on the market for beverages in Greece". The transaction would not lead to "a significant increase of market shares" for either firm, the Commission concluded.

As well as the US, PBG operates in Mexico, Canada, Spain, Russia, Greece and Turkey. PepsiAmericas, meanwhile has business in Central and Eastern Europe, as well as the US.

PepsiCo succeeded in gaining boardroom support from PBG and PepsiAmericas for its bids almost three months ago, after raising its combined offer to US$7.8bn.