PepsiCo wins EU approval to buy PepsiAmericas

BRUSSELS, Oct 27 (Reuters) - U.S. soft drink maker PepsiCo Inc (PEP.N) gained European Union regulatory approval on Tuesday to buy bottler Pepsi Americas (PAS.N), a move aimed at cutting costs and boosting profits.

The European Commission, the European Union's executive arm, said the transaction would not impede competition in Europe though overlaps existed in the two firms' businesses.

"As PAS (PepsiAmericas) was already bottling, selling and distributing PepsiCo beverages, it is unlikely that the transaction would lead to a significant change in the market structure," the EU competition watchdog said in a statement.

Pepsi, North America's second-largest soft drink maker, had announced the takeover in August. The deal will consolidate 80 percent of its beverage volume in the region, speed up decision-making and eliminate friction between the firms.

PepsiCo, whose drink brands include Mountain Dew, Tropicana and Gatorade, had spun off its bottling arms PepsiAmericas and Pepsi Bottling Group Inc (PBG.N) in 1999. (Reporting by Bate Felix, editing by Dale Hudson)