PepsiCo Proposes R25.4billion Deal To Buy Pioneer Foods

U.S. firm PepsiCo has offered to buy South Africa’s Pioneer Food Group in a deal worth an estimated R25.4billion, around US$1.7 billion 

The move was positioned by PepsiCo as part of its plans to expand in the country and in sub-Saharan Africa more broadly. It is currently represented in South Africa by brands such as Simba, Nik Naks Lays, Doritos, Pepsi and 7UP. If it goes ahead the deal would add Sasko breads and Ceres juices to the list, among others.

Pioneer owners are being offered at least R110 a share. According to reports more than 50 per cent of shareholders are already in support of a deal, despite the fact that the price was significantly less that Pioneer’s 2015 highs of over R210 a share.

If the deal goes ahead it will be PepsiCo’s biggest acquisition in the region to date  and its second largest since 2010.