European Commission Approves Proposed Acquisition of PepsiAmericas by PepsiCo
PAS is a bottler for carbonated soft drinks and other ready to drink beverages. It currently conducts business in the US, and Central and Eastern Europe, where it is the manufacturer, seller and distributor of Pepsi-Cola beverages.
29 Oct 2009 --- The European Commission has cleared under the EU Merger Regulation the proposed acquisition by PepsiCo, Inc. of one of its bottlers, PepsiAmericas (PAS) , both of the US. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
PAS is a bottler for carbonated soft drinks and other ready to drink beverages. It currently conducts business in the US, and Central and Eastern Europe, where it is the manufacturer, seller and distributor of Pepsi-Cola beverages. It also has operations in the Caribbean and Central America. PepsiCo is a global beverage, snack and food company, based in the US and active worldwide.
The Commission found that t he parties' activities overlap to a very limited extent but that the proposed transaction would lead to the vertical integration of the brand owner and its bottler. As PAS was already bottling, selling and distributing PepsiCo beverages, it is unlikely that the transaction would lead to a significant change in the market structure. Consequently, the Commission concluded that the proposed transaction would not raise any competition concerns.
