PepsiCo has made a $1.7 billion (R23.5 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 R110 ($7.94) per Pioneer Foods ordinary share, the companies said, with the news lifting the South African company’s shares by 28.8% to almost R100.
“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.