PepsiCo Inc and Tingyi Holdings Corp agreed to form an alliance in China that will give both food and drink companies greater access to the biggest population on the planet.Under terms of the deal announced on Friday, Tingyi-Asahi Beverages (TAB), which is majority-owned by Tingyi, will assume PepsiCo's ownership in a network of 24 bottlers located throughout China that are either owned by Pepsi or through existing joint ventures.In return, PepsiCo will receive a 5 percent stake in TAB, worth about $55 million, according to a regulatory filing. PepsiCo has the option to increase its stake to 20 percent by 2015, when China is projected to become the world's largest market for bottled beverages.In addition to giving PepsiCo's sodas, sports drinks and juices access to Tingyi's vast distribution network, the move helps close the gap in China between PepsiCo and its archrival Coca-Cola Co.
PepsiCo, Inc. (PepsiCo) is a global food, snack and beverage company. Shares of PEP fell by 1.67% or $-1.048/share to $61.75. In the past year, the shares have traded as low as $59.25 and as high as $71.89. On average, 10731800 shares of PEP exchange hands on a given day and today's volume is recorded at 2256262.
