Call it dietary diversification: PepsiCo could be the next target for Kraft-Heinz after its failed takeover of Unilever, says CreditSights.Half of Kraft-Heinz is owned by Warren Buffet and private equity firm 3G. Buffett says he drinks five Coca-Colas every day. (Not the diet kind, improbably.)Now, some reports have speculated that AB-Inbev — the megabrewer created by 3G — could buy Coca-Cola, in which Buffett has a roughly 9 per cent stake. But as far as large targets go, though, Coca-Cola is pretty pricey. From the CreditSights note:The numbers look much more doable at PEP… PEP has a lower multiple and operating margin than KO. The margin difference is due in part to the fact that KO operates as a pure-play beverage company, while PEP generates over 50% of its revenue from snacks.A large
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Call it dietary diversification: PepsiCo could be the next target for Kraft-Heinz after its...