Varun Beverages to buy Pepsi India's bottler in South Africa
Varun Beverages, the Pepsi India bottler, on Tuesday announced its plans to acquire The Beverage Company, a South Africa-based entity, in a deal valued at 13.2 billion rupees ($158.71 million), media reports said.
With this strategic move, Varun Beverages will enter into Africa's largest market.
The Beverage Company is the bottling and distribution arm of PepsiCo-branded non-alcoholic beverages in South Africa, boasting five manufacturing facilities in the country and operations in Lesotho, Eswatini, Namibia, and Botswana, ET reported.
Varun Beverages, a major franchisee of PepsiCo outside the United States, disclosed its option to accept minority co-investment from a "large equity fund."
With a presence in India through over 30 manufacturing units, Varun Beverages packages and distributes beverages under the Pepsi, Mirinda, and Tropicana labels.
The completion of this acquisition is anticipated on or before July 31, 2024, contingent upon regulatory approvals.
Ahead of this announcement, Varun Beverages' shares closed 3.5% higher on Tuesday.
In a parallel development, the Gurugram-based company inked a memorandum of understanding with the Jharkhand government on Tuesday for the establishment of a manufacturing plant in the state, involving a capital expenditure of 4.5 billion rupees.
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