Manufacturing Digital understands PepsiCo is offering $29.50 per share in Pepsi Bottling Group (PBG) and $23.27 per share in Pepsi Americas.
PBG confirmed that it received an unsolicited, non-binding proposal from PepsiCo and its Board of Directors will evaluate the proposal carefully and respond in due course.
BID TO IMPROVE
New York-based PespiCo currently has minority stakes in both businesses - 33 percent of Pepsi Bottling Group and 43 percent of Pepsi Americas.
If completed, the acquisitions would create a leaner, more agile business model and provide a stronger foundation for PepsiCo's future growth.
"We believe that by reshaping our business model we can significantly improve our competitiveness and our growth prospects," said PepsiCo Chairman and Chief Executive Indra Nooyi.
"We could unlock significant cost synergies, improve the speed of decision making and increase our strategic flexibility. We would be able to present a more unified face to our retail and food service customers, which would better position us to provide customised solutions, as we do at Frito-Lay, and to take to a new level our 'Power of One' program of bundled food and beverage offerings."
EARNINGS BOOST
PepsiCo said the deals would boost its annual earnings by at least 15 percent.
Last October, it said it was cutting 3,300 jobs in the U.S. to cut costs.
PBG confirmed that it received an unsolicited, non-binding proposal from PepsiCo and its Board of Directors will evaluate the proposal carefully and respond in due course.
BID TO IMPROVE
New York-based PespiCo currently has minority stakes in both businesses - 33 percent of Pepsi Bottling Group and 43 percent of Pepsi Americas.
If completed, the acquisitions would create a leaner, more agile business model and provide a stronger foundation for PepsiCo's future growth.
"We believe that by reshaping our business model we can significantly improve our competitiveness and our growth prospects," said PepsiCo Chairman and Chief Executive Indra Nooyi.
"We could unlock significant cost synergies, improve the speed of decision making and increase our strategic flexibility. We would be able to present a more unified face to our retail and food service customers, which would better position us to provide customised solutions, as we do at Frito-Lay, and to take to a new level our 'Power of One' program of bundled food and beverage offerings."
EARNINGS BOOST
PepsiCo said the deals would boost its annual earnings by at least 15 percent.
Last October, it said it was cutting 3,300 jobs in the U.S. to cut costs.
