US soft drink giant Pepsico Inc has teamed up with the Carlyle global investment group to try to outbid San Miguel Corp in the race to acquire Philippine soft drink firm Cosmos Bottling Corp, a local newspaper reported on Friday.
The Philippine Daily Inquirer quoted sources from the local banking industry as saying Pepsico was threatened by the prospect of top Philippine food and beverage firm San Miguel forming a virtual monopoly in the local soft drink industry.
San Miguel will become a 65 per cent partner in Coca-Cola Bottlers Philippines this month after it bought back its share in the soft drink firm from Australia's C-C Amatil.
San Miguel previously said it hopes to clinch a deal by next month to buy conglomerate RFM Corp's 85 per cent stake in Cosmos.
Coca-Cola Bottlers is understood to have around 60-65 per cent of total market share, Cosmos around 20-25 percent and the local operation of Pepsico around 10 per cent.
Industry sources said San Miguel reportedly offered to buy RFM's holding in Cosmos for 12 billion pesos ($226.42 million) but RFM quoted a higher price of 16 billion.
The sources said Pepsico tapped Washington D.C.-based Carlyle group to start raising funds to boost its bid for Cosmos.
The report said Pepsico previously wanted to take up only a minority interest in Cosmos.
Cosmos shares started rising in early June on speculation that both Pepsico and San Miguel have started talks to acquire RFM's stake in the local soft drink firm.