‘Dr. Pepper’ maker to give up on $2 billion deal with PepsiCo
The maker of Dr. Pepper and other drinks could give up its deal to sell its soda-making business to PepsiCo, the latest sign that the beverage giant may have been the target of antitrust charges filed by rival companies.
In a letter to Pepsi’s board of directors on Tuesday, the company’s former chief executive officer, Paul Colangelo, said the company had agreed to a sale of its soda business to the Chinese beverage company.
Colangelo said the deal would be contingent on the completion of a new merger agreement with Pepsi and other mergers.
He said he hoped to complete the deal “in the next few weeks.”
Colangelo has been one of the biggest critics of the $2.7 billion deal between the two companies.
PepsiCo said it would sell off its soda operations in a deal that would create a $20 billion global soda market.
PepsiCo’s purchase of the soda business was widely seen as a response to Colangelo’s complaints that the deal had not kept up with Pepsi’s rising share price.
Under the deal, PepsiCo would buy back a large stake in the company at $1.50 per share.
The PepsiCo deal comes after Colangelo took over as CEO of the company in 2011, after the former Coca-Cola CEO sold his company to Pepsi in 2011 for $4.2 billion.
Pepsi’s shares had dropped nearly 40 percent in 2014 and have since recovered slightly.