Pepsi strikes China deal with Tingyi

Pepsi is swapping its bottling operations in China for a 5% stake in Tingyi-Asahi Beverages Holding Company, as well as an option to buy another 15% by 2015. Tingyi-Asahi Beverages has been valued at around $15 billion for the purposes of the deal.

The deal, which sees no cash change hands, comprises 24 bottlers Pepsi currently owns in China. It does not include Pepsi’s bottlers in Hong Kong, Macau and Taiwan. Tingyi-Asahi Beverages will become Pepsi’s anchor bottler in China, responsible for distribution and sales of Pepsi’s beverage brands, including Pepsi Cola, Mirinda and 7 Up, as well as its non-carbonated beverage brands such as Gatorade and Tropicana. Pepsi, which...