One of the reasons that Nestle has given to walk away from a possible deal with Pepsi is that Pepsi sells too much junk food and drink.
Huh!
Let me see if I understand this. Nestle, the company that presents itself as healthy and nutritional and has a tag line that says "Good Food, Good Life", is worried about getting into the market for junk food and drink. Fair enough.
I wonder when they found out what Pepsi did for a living? These failed discussions being revealed puts Pepsi in an awkward position.
Egg on face Nestle!
Onésimo Alvarez-Moro
See article:
Nestle and PepsiCo held merger talks in the spring that eventually collapsed over concerns about selling too much junk food as well as structure, according to a published report on Thursday.
The Wall Street Journal reported that PepsiCo (PEP) made an initial approach to Nestle (NSRGY) in the spring, citing a person familiar with the situation.
But Nestle was concerned that a deal with Pepsi would dilute its mission of selling more healthy food and beverages. There were also complications of structuring a deal to combine with the smaller Pepsi, the report said.
Pepsi, in addition to its colas, owns the Frito-Lay brand of potato chips. Nestle also peddles junk food with products such as Scooby-Doo Mystery Pops and the KitKat chocolate bars.
There are currently no talks between Nestle and Pepsi, the newspaper added.
The report did give a boost to Nestle shares, which rose over 2%. Shares of Unilever (UL) , another European consumer products giant, also rose over 2%.
See full Article.
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