Bank of England Sees Surge in Higher-Risk Collateral 
FTSE 100 Falls as US-Iran Conflict Drives Oil Prices Higher 
Dollar Hits Two-Week High as Iran Conflict Lifts Oil and Bond Yields 
MongoDB Stock Sinks 14% as Atlas Growth Misses Expectations 
Audi, SAIC Launch China Innovation Hub for New AUDI Models 
Nvidia Eyes $2.5 Billion Investment in Thinking Machines Lab 
Singapore Straits Times Index Hits Record High as Banks, Property Stocks Rally 
Gold Prices Hold Near $4,500 as Fed Rate Hike Bets Ease 
SpaceX Turbine Push Unlikely to Threaten Howmet, Bernstein Says 
Adobe Names Anil Chakravarthy CEO as AI Push Accelerates 
Oil Prices Surge as U.S.-Iran Conflict Threatens Hormuz Supply 
Honda Targets $9.4 Billion in Cost Cuts as China EV Competition Intensifies 
Anthropic Nears $15 Billion Credit Deal Ahead of IPO 
Tesla Cybercab Launch Puts Robotaxi Ambitions in Focus 
Asian Stocks Rally as Fed Rate Hike Fears Ease 
Deutsche Telekom Shares Rise as Elliott Pushes Against T-Mobile Merger 
Fast Retailing Shares Drop as Uniqlo Japan August Sales Fall 
Add as a preferred source on Google
Lotte Chilsung Beverage Co., Ltd. has acquired a significant majority in Pepsi Philippines, signaling its intent to expand further in Southeast Asia. The move positions the South Korean brand for growth beyond its home turf.
The company is a leading brand in the soft drink market in its home ground, and on Wednesday, Oct. 4, it announced its acquisition of management rights in Pepsi-Cola Products Philippines Inc.
Lotte Chilsung Beverage secured a 73.6% stake in its deal with Pepsi Philippines. According to The Korea Economic Daily, the company now fully owns the Manila unit of Pepsi since it already purchased a 34.4% stake in 2010.
The beverage manufacturing division of the Lotte Group gradually increased its shares in Pepsi Philippines by directly buying them from the parent firm, PepsiCo. In addition, it tendered an offer on the Philippine Stock Exchange.
Expansion Bid Beyond South Korea
As it now owns Pepsi Philippines, Lotte Chilsung wants to expand its business in the region. The company is eyeing an expansion outside of Korea, probably one of the main reasons for the stake purchase.
The Philippine unit of Pepsico bottles and distributes beverages such as Pepsi variants and Mountain Dew. It also handles the bottling and distribution of Gatorade sports drinks and Sting energy drinks. It has 12 plants and 14 sales branches across the country.
"With this acquisition of management rights, the proportion of our overseas sales, including exports, will expand to the upper 30% range next year," an official of Lotte Chilsung said. "Next year we will be reborn as a global beverage company."
Lotte Chilsung's Plans for Its Newly Acquired Asset
The Korean firm plans to use Pepsi Philippines' facilities to produce and distribute Pepsi-branded sodas and its own beverages, such as Milkis and its Chum-Churum soju. The company also hopes to turn its Philippines-based operations as the starting point for its planned Southeast Asian expansion and the global markets.
The Korea Joongang Daily reported that the deal between Lotte Chilsung and Pepsi Philippines was officially completed on Sept. 29. "We will enhance Pcppi's operating profit margin to 8.5% by 2025 with investments such as in-process optimization through enhancing the IT infrastructure, automation equipment, and the streamlining of our logistics network," Lotte Chilsung said in a statement.
