Corporate News: Peltz Builds Big Stake In PepsiCo, Mondelez

Pepsi Co. has dropped in first quarter earnings due to restructuring efforts and potential structural changes for its North American drinks business. Pepsi’s drinks business has been outperformed by its snacks business which includes brands like Lay’s potato chips and Quaker oatmeal. This could mean that Nelson Peltz’s Trian Fund Management LP could be pushing PepsiCo Inc. to split its snack and drink businesses or to merge with Mondelez. Trian’s holds roughly $1.4 billion in stakes in both PepsiCo Inc. and Mondelez International Inc. combined.

Since PepsiCo’s drinks business has lost market shares during the first quarter to Coca-Cola Co. I believe Train and other investors will push PepsiCo into splitting it’s drink and snack businesses. PepsiCo’s chief financial officer named Hugh Johnston said the company is looking ” at all available options to create shareholder value.”

This affects us directly as many of us purchase these name brand products on a daily basis. This large scale merger or acquisition could potentially alter prices.


-Jonathan Chan

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