Afternoon Coffee: IBM Acquires Red Hat, Pepsi and Nestle Break With Palm Oil Supplier

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IBM announced Monday it would acquire Red Hat, a provider of open source software and cloud services, for $34 billion, according to Ars Technica. Red Hat is the leading distribution provider of Linux for enterprises, as well as the top operating system provider for cloud computing. The deal strengthens IBM’s push into the cloud, particularly its ability to support hybrid cloud environments.

Pepsi and Nestle

The palm oil supply chain has attracted critical interest from environmental groups in recent years, and major food and beverage producers are taking notice. As Bakery and Snack reports, Nestle announced earlier this month it would end its joint venture with Indofood Group in response to alleged deforestation and human rights abuses. Pepsi also reiterated its decision to stop procuring palm oil from IndoAgri, a subsidiary of Indofood.

Deutsche Post Sells in China

Deutsche Post DHL announced Friday it would sell its supply chain and logistics business in China to S.F. Holding, Reuters reports. The sale will form a partnership between the two companies, which will operate the former business group as a co-branded organization.

U.S. GDP

And finally, an economic update: The U.S. economy grew at a 3.5% rate in the third quarter, The Wall Street Journal reports, supported by strong consumer and government spending. The Commerce Department’s report also included warning signs, however, that the current expansion could meet resistance in the months ahead.