Nod for PepsiCo's stake deal

PepsiCo Inc has received regulatory approval yesterday from China's Ministry of Commerce for its plan to swap its bottling operations in China for a stake in Tingyi (Cayman Islands) Holding Corp's beverage business.

PepsiCo will transfer equity interests in bottling operations in China to Tingyi-Asahi Beverages Holding Co under the deal in November. In exchange, PepsiCo will get 5 percent of Tingyi-Asahi, and may raise the stake to 20 percent by October 2015.

PepsiCo aims to maximize growth in China and the alliance may narrow the gap with Coca-Cola Co in the world's fastest-growing drinks market where PepsiCo ranked fourth in the country's soft-drink market and Coca-Cola was No. 1 in 2010.