Business
PepsiCo to Acquire Pioneer Foods for US$1.7bn
- PepsiCo to Acquire Pioneer Foods for US$1.7bn
Pioneer Foods, a South African based food company, announced on Friday that PepsiCo has made US$1.7 billion offer to acquire the company.
The company’s shares surged by 29 percent to 100 rand after the details were made public.
In a statement released by PepsiCo, Pioneer Foods will complement PepsiCo expansion strategy in Sub-Saharan Africa by boosting manufacturing and distribution capabilities.
The U.S. drinks and snack group offered 110 rand or $7.94 for each of Pioneer Foods ordinary share.
PepsiCo Chairman and CEO, Ramon Laguarta, said: “Pioneer Foods forms an important part of our strategy to not only expand in South Africa but further into sub-Saharan Africa as well.”
Pioneer Foods exports drinks, grains, and several other products to more than 80 countries.