The UK’s competition regulator is investigating PepsiCo’s proposed acquisition of South Africa-based Pioneer Foods Group.
An inquiry into the deal was launched yesterday by the Competition and Markets Authority (CMA). The deadline for the CMA to announce its decision on whether to refer the merger for a phase 2 investigation is 26 March 2020.
PepsiCo announced in July it had agreed a $1.7 billion deal to acquire Pioneer Foods, maker of brands such as Lizi’s, Fruit Bowl, Weet-Bix, Liqui-Fruit, Ceres, Sasko, Safari, Spekko and White Star.
According to PepsiCo, the proposed acquisition will help it gain a solid beachhead for expansion into sub-Saharan Africa by boosting its manufacturing and go-to-market capabilities.
“Pioneer Foods forms an important part of our strategy to not only expand in South Africa, but further into sub-Saharan Africa as well,” said PepsiCo CEO Ramon Laguarta when the deal was announced.
Earlier this month, PepsiCo become a major shareholder in Senselet Food Processing, an Ethiopian crisps company founded by Veris Investments in 2015.
© FoodBev Media Ltd 2020
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