Nestle, PepsiCo considered merger

Global consumer goods heavyweights Nestle and PepsiCo were reportedly involved in talks over a possible merger earlier in the year, according to a report in the Wall Street Journal.

According to the newspaper, the talks stalled following
numerous complications and have not resumed since. It was reported that PepsiCo
initiated discussions with Nestle, however, it is claimed that the Swiss group
rejected the deal amid concerns that PepsiCo's involvement in the area of
snacks, such as potato chips and soft drinks, would detract from its ambitions
to become a more health-orientated business.

Nestle spokesman Francois Perroud declined to comment on
such reports, but added that the Swiss chocolate giant's acquisition strategy
continues to have a strong focus on the nutrition segment, underlining the fact
that Nestle is striving to become a more health-focused company.