Pepsi urged to become snack food behemoth

City A.M. Reporter
ACTIVIST shareholder Nelson Peltz said yesterday he wants PepsiCo to buy Mondelez International for around $35 a share in a deal that would be worth $62.46bn and create a snack food powerhouse selling everything from chocolate to chips.

Peltz said in a 59-page presentation that PepsiCo was at a “strategic crossroads” and the status quo was unsustainable. Peltz has played a role in some of the food industry’s biggest deals.

Speaking at a conference that was broadcast on CNBC, Peltz said PepsiCo “doesn’t love the deal”. He also said he plans to meet with Mondelez chief executive Irene Rosenfeld in the coming weeks.

PepsiCo has said it sees no need for large-scale mergers. It has already said that it was weighing structural options for its North American beverage business but does not plan to discuss it until early next year.