US: Mondelez takeover "too risky" - PepsiCo CFO
PepsiCo is resisting calls from Nelson Peltz over the future of the business
PepsiCo CFO Hugh Johnston has insisted a takeover of Mondelez International would be "too risky" after calls from activist investor Nelson Peltz to carry out the deal.
Peltz has urged PepsiCo to acquire the owner of Cadbury and Oreo and then spin off its drinks operations, which includes Pepsi cola and Tropicana. The investor has questioned whether PepsiCo should have faster-growing snacks operations and slower-growth drinks businesses in its portfolio.
"We feel like this portfolio is working so well right now and the idea of taking on an US$80bn acqusition and going through all the risk of integration and paying a premium for that business would probably create value for Mondelez shareholders, but I think it's really too risky for PepsiCo shareholders," said Johnston.
"That's why we've been pretty clear: we think we have the portfolio right, we're not interested in doing large deals. We think by focusing on our portfolio [it is] the best way to deliver value for shareholders."
Peltz said earlier this month that PepsiCo is at a "strategic crossroads" with a business structure that was "increasingly unmanageable".
He claimed the best way to maximise value at PepsiCo would be to merge with Mondelez.
If PepsiCo declined to buy Mondelez, an alternative, or "Plan B", Pelzt said, should be to separate its own beverages and snacks business.
As we welcome in the New Year, we invite Euromonitor to cast its eye over what 2014 holds for the drinks industry. In the first part of this month's management briefing, the global market research and...
PepsiCo India is one of the largest players in packaged foods and soft drinks in India. The holding became the new title sponsor of the Indian Premier League (IPL) for five seasons starting from 2013....
Ahead of the Oscars, due to be handed out in just over a month's time, Richard Corbett has some gongs of his own to hand out. In recognition of the best new soft drinks products in 2013, who will win ...
PepsiCo Deutschland GmbH is the second biggest player in carbonates in Germany. The company offers a wide product portfolio within carbonates, covering cola and non-cola carbonates through well-known ...
In 2012, Cía de Bebidas Pepsico continued to adapt to the gloomy economic climate by holding back prices, offering its core carbonates brands at lower retail prices than its main competitor Cía Servic...
The G8 Soft Drinks industry guide provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2008-12, and forecast to 2017). The guide al...
- Is Diageo on the Brink of a Brain Drain?
- SABMiller edges Diageo as beer trumps spirits
- Will Keurig Kold come to Coca-Cola Co's Rescue?
- Focus - SABMiller's FY Sales Performance by Region
- Focus - Indonesia: Prohibition in Paradise?
- Rémy Cointreau eyes recovery after Q4 bounceback
- Carlsberg exec joins Diageo as Africa chief steps
- Diageo YTD sales come in flat
- Bacardi hands global advertising to single agency
- Heineken "concerned" as Indonesia enacts beer ban
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Bacardi Limited - Strategy and SWOT Report
- ALDI 2015: Radically transforming Anglo Saxon grocery markets
- Champagne: Less Than Bubbly