PepsiCo (PEP -0.30%) is set to add a deep portfolio of energy drinks to its beverage lineup. Regulators have approved its deal to buy Rockstar, according to The New York Post, after concluding that the merger doesn't raise significant competition concerns. The endorsement happened on Friday but hasn't been officially announced yet by the Federal Trade Commission.

Pepsi made the purchase on March 11, saying at the time that the addition of the core Rockstar brands will fit well with its existing beverage assets like Mountain Dew and AMP. The purchase should help it win market share in the attractive energy drink category. "Over time, we expect to capture our fair share of this fast-growing, highly profitable category and create meaningful new partnerships in the energy space," CEO Ramon Laguarta said.

Two energy drinks surrounded by ice cubes

Image source: Getty Images.

Pepsi is paying $3.85 billion for the Rockstar assets and had expected the deal to close sometime before July. This week's approval by the Federal Trade Commission could mean the transaction will close this month, but the consumer staples giant doesn't see it having a material impact on its sales or earnings in fiscal 2020.