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PepsiCo has twice withdrawn its application for FTC backing, to allow the watchdog “more time” to review the deal, which was signed in August 2009.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.  

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.

Stay informed for just £1! *

Get access to unbiased and data-driven news with a subscription to Just Drinks.

What’s included in your subscription:

  • Unlimited access to Just Drinks content including daily global news, in-depth analysis, and interviews with C-suite executives
  • Unbeatable coverage of categories from beer, wine and spirits to soft drinks and hot
    beverages
  • Unrivalled drinks industry comment from Dean Best, Jessica Broadbent and leading sector specialists

Have a Subscribtion Sign in

Get help with subscribing or signing in

*30-day digital subscription for £1. Available to new subscribers only