US beverages giant, Pepsi has indicated that it does not require large scale mergers and acquisitions in order to sustain operations at this point of time.

The indications came after it was reported that billionaire investor Nelson Peltz has increased a stake in the company and in food maker Mondelez International. According to some people closer to the matter Peltz's Trian Fund Management has built a stake in the company but did not reveal the per cent age of stake being acquired by the investor.

Jeff Dahncke, a PepsiCo spokesman said, "We are making strong progress in our strategy to deliver long-term growth and create shareholder value, and we do not see the need for any large scale M&A." Dahncke did discuss any investment by Peltz in the company.

Some reports suggest that Peltz has spent about $2 billion for investing in the food business. Some even suggest that Peltz might push for a merger between Pepsi and Mondelez. Jo Bradley, a U. K.-based spokeswoman for Mondelez only said that the company does not comment on market speculation.

The shares of PepsiCo rose 3.3 per cent to close at $78.64 in the New York Stock Exchange while Mondelez shares recorded an increase of gained 4.1 per cent to $29.73 at the stock exchange.