PepsiCo bids for bottlers in profit push
PepsiCo has tabled a move to purchase two of its largest global bottling companies as part of plans to streamline and strengthen distribution of its products in markets like North America, according to the company.
The beverage group says it has proposed an offer to acquire the outstanding shares of the Pepsi Bottling Group and PepsiAmericas in a deal expected to total $6bn (€4.5bn).
Potential benefits to group earnings of a15 per cent increase are expected from the deal should the purchase be completed, claims the company.
Group chairman Indra Nooyi said that the growing prevalence of non-carbonated drink products in the global market and the additional logistic challenges of meeting shifting consumer needs had led to the group to restructure operations.
"We could unlock significant cost synergies, improve the speed of decision making and increase our strategic flexibility,” stated Nooyi.
