The Federal Trade Commission (FTC) has paved the way for PepsiCo to buy drink company Rockstar Energy for US$3.85 billion, reported The Post.
The regulator approved the deal, announced last month during the coronavirus pandemic, on Friday, April 17, and the company is expected to close on it in the coming days, sources said.
Regulators had been reviewing the acquisition to be sure it wouldn’t reduce competition. PepsiCo owns Mountain Dew Kickstart and is also a partner in Starbucks energy drinks.
But Rockstar’s market share has fallen in recent years from almost 20% to less than 10%, which helped alleviate the FTC’s concerns, a source said. Rivals include Red Bull and Monster, which are part-owned by Coca-Cola.
Rockstar founder Russell Weiner, son of conservative talk show host Michael Savage, is not expected to play a big role under the new ownership, the source added.
Full Content: New York Post
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