PepsiCo plans to acquire South Africa's Pioneer Foods

JOHANNESBURG (Reuters) - U.S.-based beverage and snack maker PepsiCo <PEP.O> is planning to acquire South Africa's Pioneer Food Group <PFGJ.J> for around $1.7 billion, the two companies said on Friday, as it targets expansion in Africa.

PepsiCo offered a cash consideration of 110 rand (6 pounds) per Pioneer Foods ordinary share, a 56.5% premium as of July 12.

"This acquisition will help PepsiCo gain a solid beachhead for expansion into sub-Saharan Africa by boosting the company's manufacturing and go-to-market capabilities, enabling scale and distribution," PepsiCo said in a statement.

(Reporting by Tanisha Heiberg; Editing by Jan Harvey)