An Intro to the Pepsico Quaker Merger

Pepsico Quaker Merger


This case talks about the latest craze of mergers and acquisitions and the ensuing fallout. The concern here's about the $14 billion merger of PepsiCo and Quaker Oats. After an extended delay in relation to granting permission because of this merger, the Government Trade Commission (FTC) finally gave the just do it after it recognized that there is a split in the view of its members. 50 percent of the users voted in favour and the others against your choice for the merger. This committee was set up to research the fairness of the handle respect to the marketing principles generally followed. Because of the split in decision, the complete investigation was referred to as off, allowing the offer to proceed.

FTC staff had objected to the merger given that they believed that this sort of merger would eliminate competition in the activities drink market segment. This might result in an almost monopolistic situation and present PepsiCo the overriding authority in trimming handles convenience stores.

This deal, beneath the in a position leadership of Steve Reinemund, will generate a formidable position of PepsiCo in the refreshments and junk food segment. This might push the limit of the revenues to above $25 billions. This merger means that Gatorade, among the leading sports drink up, would come beneath the PepsiCo banner and so give PepsiCo the industry leading especially over Coco-Cola, in the non carbonated drink up segment. Simply because Coco-ColaРІР‚в„ўs PowerAde, a non-carbonated drink targeted at the sports segment has only 15% of the marketplace share while Gatorade has