Business Intelligence on Retailing, Franchising, and Consumerism in China


China's Ministry Of Commerce Approves Strategic Alliance Between Master Kong, Pepsi

After over four months of waiting, the Ministry of Commerce of China finally approved the strategic alliance between Master Kong and Pepsi.

Master Kong and Pepsi reached a strategic alliance agreement in November 2011, stating that Master Kong will exchange a 5% of its stake for the entire stake of PepsiCo's bottling plant in China. Meanwhile, Master Kong will become the franchised bottling provider for PepsiCo in China, operating the manufacturing, sales and distribution of PepsiCo's sodas and the sports drink Gatorade in the marketplace.

In addition to the 5% stake in Master Kong, PepsiCo will have the right to decide if or not to increase its indirect stake in Master Kong to 20% before 2015.

The transaction was then submitted to the Ministry of Commerce of China for approval and Master Kong has confirmed that it has recently received the letter of approval from the ministry. The company said that it has begun the acquisition process, but did not disclose when the deal can be completed.

Wei Ying-chou, chairman of Master Kong's parent company Ting Hsin International Group, previously said that the acquisition will make their drinks product line more complete and boost the group's sales for 2012. Master Kong's sales reportedly reached a record high of USD7.867 billion in 2011; however, its gross profit margin decreased by 1.89% due to the increase of raw material costs.





Be the first to comment on "China's Ministry Of Commerce Approves Strategic Alliance Between Master Kong, Pepsi"

Leave a comment

Your email address will not be published.


*




  Other China News

ChinaTechNews.com:

With Advances In Artificial Intelligence, Baidu Drops Drones

Oneplus Closes Smartphone Retail Stores, Focuses On E-commerce

LeEco Cloud Welcomes Former HP, Microsoft Executives

Lenovo Will Pre-install Microsoft Apps On Android Devices


GreenChinaTech:

Chinese Electric Bus Manufacturer Lands USA Deal

American Electric Car Manufacturer To Build In China

U.S. Clean Water Company Makes Chinese Inroads

GE Will Promote Wind Power Through New Chinese Education Center


ChinaSourcingNews.com:

Hertz and AccorHotels announce their partnership to enrich the benefits offered by the loyalty program Le Club AccorHotels

New World Beijing Names New Chief

China's Huawei Will Have Made-in-India Smartphones

Zhejiang's New Electric Car Factory Backed By Chinese Internet Company