Pepsi-Quaker Deals Gets FTC Go-Ahead.(Federal Trade Commission approves PepsiCo, Inc.'s purchase of Quaker Oats Co.)(Brief Article)

Food Institute Report, The, August, 2001

In a rare deadlocked 2-2 vote, the Federal Trade Commission let PepsiCo, Inc. proceed with its $13.8 billion buyout of Quaker Oats Co. and its prized Gatorade brand. Without a majority vote, the antitrust division couldn't challenge the deal in court. The outcome was an unexpected victory for Pepsi.

Pepsi, as part of earlier concessions to win approval, already agreed to sell its All-Sport sports drink brand to Monarch Co. Under its contract with Monarch, Pepsi would also exclude Gatorade from the powerful Pepsi U.S. bottling system for 10 years, and may not engage in joint "shelf space" promotions between Gatorade and other PepsiCo beverages in convenience stores and gas stations for the same period of time.