PepsiCo Inc. agreed to buy
SodaStream International Ltd for $3.2 Billion to gain the Israeli company’s at
home soft-drink making technology. PepsiCo will pay $144 a share in cash.
The
move is widely seen as an effort by Pepsi to prop up its catalog of “healthy”
food and drink options as it continues to wage battle against longtime rival
Coca-Cola. Both PepsiCo and Coca-Cola have invested heavily in both healthier
and eco-friendly alternatives over the past decade.
The purchase will probably be the
last big move by PepsiCo chief executive officer Indra Nooyi, who said this
month she’s stepping down as head of the beverage company after 12
years in the job. The purchase of SodaStream comes as the company’s North
American beverage unit is stagnating amid a general decline in soda
consumption.
SodaStream
has been the focus of controversy in the Middle East. Protesters claimed
victory when the company closed a factory in the West Bank in 2014, which the
opponents said was part of Israel’s illegal occupation of the territory.
SodaStream has argued that boycotts and protests have hurt Palestinians more
than helped them.
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