The move follows Interpublic's acquisition of Foot Cone and Belding last year. FCB holds part of the Pepsi account, the bulk of which is handled by Omnicom. Interpublic has the $2bn Coca Cola account.
Pepsi said the move was designed to help "remove $400m in synergies" from its acquisition of Quaker Oats.
The business will include work for some of the Quaker Oats brands, such as Quaker Oatmeal, as well as fruit juice brand Tropicana and Pepsi's fizzy drink.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum here.