Halal Industry 

PepsiCo offers $1.7 billion to buy South Africa’s Pioneer Foods

| 19 July, 2019

JULY 19, 2019 | 3:56AM EDT | JOHANNESBURG

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

The U.S. 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 ($7.94) 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.

“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.

(Reporting by Tanisha Heiberg; Editing by David Goodman)

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