US: PepsiCo to seal bottlers deal by February end
Changing the game - PepsiCo CEO Indra Nooyi
PepsiCo has refiled for regulatory clearance to take full control of PepsiAmericas and Pepsi Bottling Group, after the bottlers' shareholders backed the plan in a vote.
PepsiCo hopes to complete the deal by the end of February 2010 and has refiled for clearance from the US Federal Trade Commission, the soft drinks giant said late yesterday (17 February).
Its announcement came as both PepsiAmericas and Pepsi Bottling Group (PBG) reported that the vast majority of shareholders have voted in favour of the US$7.8bn deal.
PepsiCo has twice withdrawn its application for FTC backing, to allow the watchdog "more time" to review the deal, which was signed in August 2009.
Both bottlers agreed to the move after PepsiCo raised its offer price to US$36.5 and $28.5 per outstanding share in PBG and PepsiAmericas respectively.
The group, which already owns 33% of PBG and 43% of PepsiAmericas, originally offered $29.5 and $23 per share respectively.
PepsiCo CEO Indra Nooyi said in the firm's recent full-year results announcement that the bottlers deal "changes the rules of the game in North America beverages".
After initially pinpointing $300m in annual pre-tax synergies, PepsiCo last week raised this to $400m by 2012. Between $125m and $150m of savings are set to be realised in 2010, although it expects a $400m one-off charge on the deal, it said.
"The company is still in the process of completing its integration planning. The details of these and other efficiencies relating to the company’s beverage business will be discussed at its analyst meeting scheduled for 22 and 23 March 2010," it said.
To view more just-drinks analysis on the deal, click here.
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