Pepsi buys its two biggest bottling companies

Before you go, we thought you'd like these...
Before you go close icon

CNBCis reporting that Pepsi (PEP) has finally been able to buy-out two of its largest bottlers.

Pepsi will buy Pepsi Bottling Group (PBG) for $36.50 and PepsiAmericas (PAS) for $28.50. Neither price is much above market.

Pepsi has been trying to buy the two companies since April and investors have bid the stock up. It appears that the transactions were only a matter of time.

It is still not clear how smart the acquisitions are or whether there is substantial benefit for Pepsi to own a larger part of its supply chain. The market clearly thinks there are economies of scale in the deals. It is bidding Pepsi stock up almost 3 percent this morning to $57.84.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Read Full Story

Markets

DJIA 20,775.67 32.67 0.16%
NASDAQ 5,862.02 -3.93 -0.07%
S&P 500 2,363.78 -1.60 -0.07%
DAX 11,998.59 31.10 0.26%
NIKKEI 225 19,379.87 -1.57 -0.01%
HANG SENG 24,201.96 238.33 0.99%
USD (per EUR) 1.06 0.00 0.12%
USD (per CHF) 1.01 0.00 0.19%
JPY (per USD) 113.37 -0.30 -0.26%
GBP (per USD) 1.24 0.00 -0.29%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners