Coca-Cola drops $13bn bid for Quaker Oats
Coca-Cola has pulled out of plans to launch a $13bn acquisition on US cereal and energy drink maker Quaker Oats because hostile reaction to the deal was damaging its share price.
LONDON (Brand Republic) – Coca-Cola has pulled out of plans to launch a $13bn acquisition on US cereal and energy drink maker Quaker Oats because hostile reaction to the deal was damaging its share price.
The US soft drinks giant’s shares have fallen 10% in value since speculation that it was set to buy Quaker emerged earlier this week.
Coke’s chief executive Douglas Daft planned to take control of the high-earning Quaker portfolio, which includes the Gatorade sports and energy drink brand -– a growing sector in the soft drink market.
Analysts said the company could reap huge sales from distributing the product through its unrivalled global network. Gatorade has an 80% share of the fast-growing energy drinks market in the US.
Daft decided to drop the deal after a cool response from fellow board members. The move leaves Quaker open to bids from Coke’s rival PepsiCo, French food group Danone and Swiss giant Nestle.
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