Acquisitions by Coca-Cola Co. and PepsiCo Inc. will affect a combined $21.5 billion in estimated retirement assets.
Coca-Cola's $12.2 billion acquisition of Coca-Cola Enterprises Inc.'s North American business will affect $6 billion in defined benefit assets and an estimated $2.9 billion in defined contribution assets. It includes the assumption of Coca-Cola Enterprises' $580 million in accumulated benefit obligations for North America, according to a Feb. 25 joint statement from both Atlanta-based companies that announced the deal.
Coca-Cola Enterprises had a total ABO of $3.4 billion, according to its 10-K report filed Feb. 26. A breakout of the assets related to pension liabilities wasn't available.
The companies expect the deal to close in the fourth quarter. Coca-Cola owns 34% of Coca-Cola Enterprises, which Coca-Cola will exchange as part of its purchase.
Coca-Cola's U.S. defined benefit plans have a total of $1.97 billion in assets and its non-U.S. plans $1.05 billion, both as of Dec. 31. Coca-Cola Enterprises had $2.96 billion in defined benefit assets, as of Dec. 31, according to its 10-K filed.
In defined contribution assets, Coca-Cola has $1.57 billion and Coca-Cola Enterprises $1.33 billion, according to Pensions & Investments' estimates.
Coca-Cola's U.S. plan had at least 39% in domestic equity, 7.8% in international equity, 20% in fixed income, 4.1% in hedge funds and limited partnerships, 5.4% in real estate, 8.5% cash, and the rest in other investments, according to its 10-K.
Coca-Cola Enterprises had 38.4% in international equity, 18.7% in U.S. equity, 24% in fixed income, 5% in private equity, 4.3% in hedge funds, 4.4% in real estate, 1% in infrastructure, 0.7% in timber and the rest in other assets.
Meanwhile, PepsiCo's $3.9 billion acquisition of Pepsi Bottling Group Inc. and PepsiAmericas Inc. will affect $8.64 billion in defined benefit assets and an estimated $4 billion in defined contribution assets.
Pepsi on Feb. 26 completed its acquisition of the 50% each of Pepsi Bottling and PepsiAmericas it did not already own, PepsiCo announced in a statement.
Purchase, N.Y.-based PepsiCo had $5.42 billion in U.S. defined benefit assets and $1.56 billion in international defined benefit assets, as of Dec. 26, according to its 10-K. It had $3.2 billion in defined contribution assets, according to a P&I estimate.
Somers, N.Y.-based Pepsi Bottling had $1.49 billion in defined benefit assets, as of Dec. 26, according to its 10-K filed Feb. 22. P&I estimates it has $807 million in defined contribution assets.
Minneapolis-based PepsiAmericas had $171 million in defined benefit assets as of Jan. 2, according to its 10-K; a recent amount of PepsiAmericas' defined contribution assets wasn't available.
PepsiCo's U.S. defined benefit fund has no alternative investments. As of Dec. 26, 29.8% of fund assets were in U.S. equity, 15% in international equity, 6.1% PepsiCo stock, 39.8% in fixed income, and the rest in cash and contracts with insurance companies.
Pepsi Bottling defined benefit assets were 34.8% in U.S. equities, 30.1% in international equities, 30.4% in fixed income, and the rest in cash and group annuity contracts.
PepsiAmericas' defined benefit fund had 53% in U.S. equities, 15% in non-U.S. equities, 26% in fixed income and the rest in cash, according to its 10-K.