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PepsiCo Reaches Merger Agreements with PBG and PAS

PepsiCo enters into definitive merger agreements with The Pepsi Bottling Group Inc. (PBG) and PepsiAmericas Inc. (PAS) under which PepsiCo will acquire all of the outstanding shares of common stock it does not already own in its two largest anchor bottlers.

The total value of the shares that PepsiCo will be acquiring is about $7.8 billion, and the acquisitions are expected to create one of the largest food and beverage companies globally. Based on the recommendations of the Special Committee of PBG and the Transactions Committee of PAS, the boards of directors of PBG and PAS, respectively, have approved the transactions.

PepsiCo Chairman and Chief Executive Officer Indra Nooyi says, "PepsiCo has had a constructive partnership with PBG and PAS over the past 10 years. While the existing model has served the system very well, it is clear that the changing dynamics of the North American liquid refreshment beverage business demand that we create a more flexible, efficient and competitive system that can drive growth across the full range of PepsiCo beverage brands. Our shared culture, strong operational leadership and ability to successfully integrate operations - in this case operations we know very well - should allow us to bring the businesses together quickly and seamlessly."

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