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The boards of both companies approved the deal over the weekend and an announcement is expected Monday morning, the source told The Associated Press on condition of anonymity. Gaining control of Gatorade gives PepsiCo the dominant brand in the $2.5 billion sports drink category, which has been growing faster than colas. “Gatorade would do even better under PepsiCo than it has under Quaker Oats because of better marketing and distribution,” said John Sicher, a veteran soft drink industry watcher who publishes Beverage Digest in New York. Rivals of PepsiCo were also vying to acquire Quaker Oats. The board of Coca-Cola Co. abandoned talks to buy Quaker two weeks ago; French food conglomerate Danone SA also backed away from a possible bid. |
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