US: Peltz to drop PepsiCo merger efforts
PepsiCo had been forced to counter Peltz's campaign
Nelson Peltz, the US billionaire and activist investor, will halt his campaign to merge PepsiCo with Mondelez International after the Cadbury chocolate producer lined him up for a seat on its board.
The move should come as a relief to PepsiCo's management, which had been forced to counter Peltz's backing of a PepsiCo buyout of US-based Mondelez. Peltz also wanted PepsiCo to split its drinks operations from its more profitable snacks units in the wake of a merger.
Peltz holds stakes in both PepsiCo and Mondelez through his investment vehicle, Trian Fund Management.
In a statement yesterday (21 January), Trian said that now Peltz is to become a director of Mondelez International, he will "recuse" himself from discussions over PepsiCo.
PepsiCo declined to comment.
Peltz revealed yesterday he is being put forward for election to Mondelez's board.
Irene Rosenfeld, Mondelez's chairman and CEO, said Peltz would be "a valuable addition".
"We respect his more than 40 years of business and investment experience as well as his expertise helping consumer products companies leverage their brands and improve operating and financial performance," she said. "We welcome his input as we deliver superior shareholder returns."
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