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PepsiCo Offers $1.7bn To Buy South Africa's Pioneer Foods

Published on Jul 19 2019 10:20 AM in A-Brands tagged: Trending Posts / PepsiCo / South Africa / Pioneer Food Group

PepsiCo Offers $1.7bn To Buy South Africa's Pioneer Foods

PepsiCo has made a $1.7 billion (€1.5 billion) offer to buy South Africa's Pioneer Food Group, the companies said on Friday, boosting the target's shares by nearly 30%.

The US drinks and snack group said Pioneer Food's product portfolio was complementary and would help PepsiCo to expand in sub-Saharan Africa by boosting its manufacturing and distribution capabilities.

PepsiCo offered 110 rand (€7.05) per Pioneer Foods ordinary share, the companies said, with the news lifting the South African company's shares by 28.8% to almost 100 rand (€6.4).

Expansion Strategy

"Pioneer Foods forms an important part of our strategy to not only expand in South Africa, but further into sub-Saharan Africa as well," PepsiCo Chairman and CEO Ramon Laguarta said in a statement.

Pioneer Foods, which has brands ranging from drinks to grain products such as Weet-Bix and Liqui-Fruit, exports to more than 80 countries.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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