Executive Summary on Pepsico

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Executive Summary on Pepsi Co. After PepsiCo (PEP) had acquired Pepsi Bottling Group and PepsiAmericas, Pepsi Bottling Group Inc, and PepsiAmericas Inc, stockholders approved and adopted a merger agreement with PepsiCo. Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) were to be merged with and into Metro. However, Metro continued as the surviving corporation (PepsiCo Inc, 2011). PepsiCo offers myriad food and beverage brands. Of its many product lines, each generates at least $ 1 billion in annual retail sales. In 2009, PepsiCo's revenues were more than $ 43 billion. The first quarter profit after the merger rose by 26%. This was necessitated by the acquisition and international growth. In the first quarter of 2009, the New York Security Exchange traded PepsiCo shares at 89 cents a share up from 72 cents. Sales rose 13% to $ 9.37 billion from $ 8.26 billion. PepsiCo earned 76 cents a share on revenue of $9.35 billion (Spain, 2010). The strong financial returns, which were realized after the merger, have made it one of the world's lucrative businesses. It has since managed to cut on costs. This has enabled it sell its products at relatively lower prices to its customers. PepsiCo (PEP), that also manufactures Frito-Lay, Quaker, Pepsi-Cola, Tropicana juices, and Gatorade sports drinks, before the acquisition, closed the Friday's trading at $62.47up 0.17 on a volume of 14.65 million at the New York Securities Exchange NYSE (RTTNews, 2012). Later in the day her stocks

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