PepsiCo announced today [Friday] that its Board of Directors has authorised the company to buy back up to US$5bn of common stock over the next three years.
Go deeper with GlobalData
The new programme goes into effect immediately, and PepsiCo said it expects to begin buying back shares next week.
PepsiCo said the Securities and Exchange Commission agreed that the repurchases would not violate the terms of the pooling-of-interests accounting the company has used for its merger with The Quaker Oats Company. The merger was completed in August 2001.
“This share repurchase programme reflects our great confidence in PepsiCo’s ability to continue generating strong, consistent cash flow,” said Steve Reinemund, chairman of the board and chief executive officer. “The fundamental health and vitality of our businesses allows us to invest in growth opportunities, pay a dividend and buy back shares, all at the same time.”
The company said the repurchases may be effected through one or more trading plans that comply with current regulations.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataPepsiCo cancelled an earlier share repurchase programme on 4 December, 2000 in order that its merger with Quaker would qualify for pooling-of-interests accounting. In September and October 2001 the company repurchased shares valued at approximately US$1.7bn under a temporary emergency relief order issued by the SEC when equity markets reopened after 11 September.
