Summary
PepsiCo, Inc. (PEP) filed an 8-K on February 17, 2010, to announce progress on its proposed acquisitions of The Pepsi Bottling Group (PBG) and PepsiAmericas, Inc. (PAS). A key development is the signing of a consent decree with the Federal Trade Commission (FTC) Staff regarding the confidential treatment of information obtained from Dr. Pepper Snapple Group, Inc. (DPS) related to the manufacture and distribution of certain DPS products post-acquisition. This action is a step towards satisfying antitrust regulatory requirements. In conjunction with this consent decree, PepsiCo has refiled its notification report under the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act) and requested early termination of the waiting period. The company anticipates closing these significant acquisitions by the end of February 2010, subject to final regulatory approvals and other customary closing conditions. Investors should monitor the FTC's review and approval process for these acquisitions.
Key Highlights
- 1PepsiCo has entered into a consent decree with the FTC Staff concerning confidential information related to Dr. Pepper Snapple Group (DPS) products.
- 2The consent decree aims to maintain the confidentiality of information obtained from DPS in connection with manufacturing and distribution post-acquisition.
- 3This action is in connection with PepsiCo's proposed acquisitions of The Pepsi Bottling Group (PBG) and PepsiAmericas, Inc. (PAS).
- 4PepsiCo has refiled its HSR Act notification report for the acquisitions.
- 5Early termination of the HSR Act waiting period has been requested.
- 6The company is targeting the end of February 2010 for the closing of the PBG and PAS acquisitions.
- 7Acquisition closing remains subject to regulatory approvals and other customary conditions.