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BREAKING NEWS

PepsiCo plans to acquire South Africa's Pioneer Foods

PepsiCo plans to acquire South Africa's Pioneer Foods
FILE PHOTO: Bottles of Pepsi are pictured at a grocery store in Pasadena, California, U.S., July 11, 2017. REUTERS/Mario Anzuoni -
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MARIO ANZUONI(Reuters)
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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)

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