1661880746445 Mergersacquistions

PepsiCo To Buy South African Food Company

July 19, 2019
PepsiCo will increase its footprint in Africa with the purchase of Pioneer Foods.

PepsiCo will increase its footprint in Africa with the purchase of Pioneer Foods, a South African processor of grain-based products, juices and other foods.

PepsiCo has agreed to pay $1.8 billion for Pioneer, maker of Weet-Bix breakfast cereal and Ceres fruit juice. The purchase has the approval of Pioneer’s biggest investor, a capital firm that owns 27% of the company, and enough other investors to make a majority. The deal is expected to close in the first quarter of next year.

Buying Pioneer will give PepsiCo an increased presence in sub-Saharan Africa, with brands and plants in South Africa, Nigeria and Kenya. It also will shore up PepsiCo’s sources of ground corn for snacks.

Pioneer had been languishing, due to a general slump in South Africa’s consumer sector that is part of the country’s economic woes. An analyst said in a tweet quoted by Bloomberg that more foreign companies may move in to pick up South African companies and assets at bargain prices.

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