Activist investor Nelson Peltz was named to the board of snack food company Mondelez Inc. (NASDAQ: MDLZ) Tuesday, likely to avoid a proxy fight, and he says that he is no longer pushing for a deal with PepsiCo Inc. (NYSE: PEP).

The appointment of Peltz, one of Mondelez’s largest shareholders, expands the Mondelez board to 12 members. The company said he will be one of the nominees for election at its next shareholders meeting.

Peltz has been critical of the performance of the maker of Oreos and Ritz crackers since it split off from Kraft Foods in October of 2012. Last year, Trian Fund Management, of which Peltz is a co-founder, recommended that PepsiCo spin off its beverage business and merge its snacks business with Mondelez. Peltz also has a sizable stake in Pepsi and a seat on its board.

PepsiCo CEO Indra Nooyi has repeatedly rejected the idea of splitting up the company’s beverage and snack businesses. “These two categories are better together, not just in the United States, but around the world,” she said.

Peltz has long been an advocate of corporate splits as a way to unlock value. In 2008, he pressed Cadbury Schweppes to spin off its beverage businesses. His influence was key in Kraft’s purchase of Cadbury, and the subsequent breakup of Kraft. He may have backed off his plans for Mondelez and PepsiCo for now, but no doubt he has not given up.

Shares of Mondelez were down 2.5% in early trading Tuesday to $34.35. The 52-week range is $26.45 to $36.05, and the mean price target was $35.61 before this news.

Kraft Foods Group Inc. (NASDAQ: KRFT) and PepsiCo were up fractionally in morning trading.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.