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One of the largest mergers in was the horizontal merger between PepsiCo and Quaker Oats which occurred on August 2, 2001. This merger provided PepsiCo with the boost it needed to attain tremendous growth and positioned PepsiCo as a dominating force in the food and beverage industry. In order to clearly understand the motivating factors of the PepsiCo and Quaker Oats merger, it is important to have an idea of the nature and standing of the two companies prior to the merger. ... When Quaker Oats appeared ready to be acquired, many companies showed interest in this business venture, such as Danone, Nestle, Coca- Cola and PepsiCo. ... PepsiCo was a more feasible choice for this acquisition, as their Frito-Lay products made the other segments of Quaker Oats less of a risk and they were already adept at the production and marketing of some of these products. ... A contingency was that PepsiCo must assume about $761 million in Quaker debt. ... 3 PepsiCo shares/ 1 Quaker Oats share, thus leaving the deal tax–free. ... In 1965, it merged with Frito-Lay, a snack company, to form PepsiCo. ... Currently, PepsiCo has revenues of about $27 billion and over 143,000 employees in over 200 countries. Over the years, PepsiCo has been in fierce competition with chief rival Coca Cola, with each trying to outperform the next. Coke gained a strong edge in the 1920s over PepsiCo; however, PepsiCo recovered slightly in the 1970s with the Pepsi Challenge.
Approximate Word count = 1162
Approximate Pages = 4.6
(250 words per page double spaced)
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