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Quaker Oats Co. today extended the deadline for Pepsico Inc. to sell its All Sport beverage brand to help the companies win regulatory approval for their proposed $13.4 billion merger.
The Chicago-based diversified food and beverage company said it will give Pepsi another 30 days to divest its All Sport brand so the companies can continue their ongoing negotiations with the U.S. Federal Trade Commission. The extension comes less than one month after Pepsi, the world's No. 2 soft drink maker, said the acquisition would be delayed until the third quarter as talks with federal regulators continued.
FTC officials have expressed concern about Pepsi's ability to leverage Gatorade, the dominant sports drink produced by Quaker Oats, to gain undue advantage over beverage manufacturers, sources have told Reuters.