PepsiCo hopes to complete the US$7.8bn buyout of its major bottlers, PepsiAmericas and Pepsi Bottling Group, by the end of the year.

The deal is expected to close by the end of 2009 or early 2010, said PepsiCo in a conference call today (4 August), following its announcement that an agreement has been reached with the bottlers.

The three have signed a deal after PepsiCo raised its offer to US$36.5 and $28.5 per share for Pepsi Bottling Group (PBG) and PepsiAmericas respectively.

PepsiCo will pay for the deal half in cash and half in stock, with shareholders in the bottlers set to have the option of securing payment in cash or by receiving shares in the soft drinks giant.

The deal is expected to yield $300m in annual cost savings by 2012, and PepsiCo said that half of this amount should be realised within 18 months.

The firm previously identified annual savings of $200m from a deal, but the three firms said they had found "additional savings opportunities" following negotiations.

PepsiCo will take a one-off charge of $300m, as part of the deal, it said.

More details about the consequences of the transaction for PepsiCo's North American business will be outlined later in the year, said PepsiCo's CEO, Indra Nooyi.

She said the move will make PepsiCo "far more nimble in the marketplace" and will help to take PepsiCo's North American business to "a whole new level". She added: "PepsiCo's long-term goal is to be viewed by [North American] consumers as the leading food and beverage company."

In May, PepsiCo, which already owns 33% of PBG and 43% of PepsiAmericas, offered to buy all outstanding shares in PBG and PepsiAmericas at $29.5 and $23 per share respectively. Both bottlers rejected the offer as "grossly inadequate".

Nooyi said today: "The fully integrated beverage business will enable us to bring innovative products and packages to market faster, streamline our manufacturing and distribution systems and react more quickly to changes in the marketplace, much like we do with our food business."

The deal, PepsiCo said, will bring 80% of its North American beverage volumes under one roof.

It said that the move will form part of a transformation of the North American beverage business. "Those efforts have included refreshing such brands as Pepsi and Gatorade and introducing an array of new products, ranging from the naturally sweetened zero-calorie SoBe Lifewater to low-calorie Trop50," said the firm.