Coca-Cola buys out rival's bottlers

   Date:2010/09/29     Source:

REGULATORS have approved Coca-Cola Co's US$3.4 billion buyout of the North American operations of its largest bottler on the condition that Coca-Cola restricts its access to confidential business information from rival Dr Pepper Snapple Group Inc.

The Federal Trade Commission said Monday that according to a settlement, Coca-Cola will set up a "firewall" so that its ownership of the bottler, Coca-Cola Enterprises, won't give it access to marketing information and plans for Dr Pepper Snapple, which had an existing deal with the bottler.

After the buyout, Coca-Cola will become Dr Pepper's largest distributor, with about 42 percent of its business. Shares of Coca-Cola rose 18 cents to US$58.80 in morning trading on Monday, while Dr Pepper Snapple fell 20 cents to US$34.75.

 

 

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