PepsiCo not interested in buying out Danone

PepsiCo not interested in buying out Danone

Soft drink giant PepsiCo has denied rumors about a possible bid for the French food group Danone. The news resulted in a massive drop in the share prices of the company as it lost around $2.4 billion in value at the start of trading Monday. A spokesperson for French market regulator AMF said in a statement about the rumors floating in the market: “PepsiCo have indicated to us that they are not planning a bid on Danone.”

Pepsi on their part have not released a statement on their decision to buy out the French food company. However, they did help the French company improve their market position by around 20% during the time of the rumors of the possible deal between the two companies. The rumors were so strong that even the French politicians expressed their opinion against such a sellout of their domestic company to an American giant.

Danone Chairman Franck Riboud on his part said that although their were no official attempts from the Pepsi about the deal, they were quite serious about any such proposal from the American giant. The company is often in the news about such possible takeover bids considering 85 percent of its capital are floating freely. Danone has a strong position in the European market and there is high possibility of a possible bid by some group or the other in the near future.