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| PepsiCo buys Sodastream for $3.2bn | PepsiCo buys Sodastream for $3.2bn |
| (about 4 hours later) | |
| PepsiCo has announced it is buying Sodastream for $3.2bn (£2.5bn). | PepsiCo has announced it is buying Sodastream for $3.2bn (£2.5bn). |
| Israel-based Sodastream makes a machine and refillable cylinders allowing users to make their own carbonated drinks. | Israel-based Sodastream makes a machine and refillable cylinders allowing users to make their own carbonated drinks. |
| The deal gives Pepsi a new way of reaching customers in their homes at a time when its signature sugary drinks are becoming less popular. | The deal gives Pepsi a new way of reaching customers in their homes at a time when its signature sugary drinks are becoming less popular. |
| It is also the company's first big acquisition since chief executive Indra Nooyi disclosed she would step down in October after 12 years at the helm. | It is also the company's first big acquisition since chief executive Indra Nooyi disclosed she would step down in October after 12 years at the helm. |
| PepsiCo will buy all outstanding shares of Sodastream for $144 each - almost 11% higher than its closing price in New York on Friday. | PepsiCo will buy all outstanding shares of Sodastream for $144 each - almost 11% higher than its closing price in New York on Friday. |
| The stock has soared 85% this year after rising by 78% in 2017. | |
| The takeover has already been approved by the boards of both firms. | |
| PepsiCo president Ramon Laguarta, who will succeed Ms Nooyi on 3 October, said Sodastream was "highly complementary and incremental" to Pepsi's business. | PepsiCo president Ramon Laguarta, who will succeed Ms Nooyi on 3 October, said Sodastream was "highly complementary and incremental" to Pepsi's business. |
| "PepsiCo is finding new ways to reach consumers beyond the bottle," he added. | "PepsiCo is finding new ways to reach consumers beyond the bottle," he added. |
| Sodastream has repositioned itself as a sparkling water maker to appeal to younger consumers who are more health and environmentally conscious and increasingly shun soft drinks. | |
| "With sugary carbonates and juices struggling and no turnaround in sight, mitigating the losses through newer and healthier products will be essential for PepsiCo," said Euromonitor International analyst Matthew Barry. | |
| The market research firm says bottled water sales rose 6.2% annually in the five years to 2017, while carbonated soft drinks sales were flat. | |
| If regulators approve the deal, it is expected to be finalised by January 2019, subject to a vote by Sodastream shareholders. | If regulators approve the deal, it is expected to be finalised by January 2019, subject to a vote by Sodastream shareholders. |
| Sodastream was originally founded in the UK in 1903 and went through various changes of ownership until it became a subsidiary of Cadbury Schweppes in 1985. | Sodastream was originally founded in the UK in 1903 and went through various changes of ownership until it became a subsidiary of Cadbury Schweppes in 1985. |
| In 1998, it was bought by Israeli firm Soda-Club, with its UK manufacturing plant in Peterborough closing in 2003. | In 1998, it was bought by Israeli firm Soda-Club, with its UK manufacturing plant in Peterborough closing in 2003. |