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PepsiCo Takes Africa Foothold With $1.8 Billion Pioneer Deal (3)

July 19, 2019, 1:09 PM

PepsiCo Inc. agreed to buy South Africa’s Pioneer Foods Group Ltd. for about 24.4 billion rand ($1.8 billion), adding local brands such as Weet-Bix breakfast cereal and Ceres fruit juice to ignite a push across the continent.

The deal gives the U.S. drinks giant a hub from which to expand more aggressively in sub-Saharan Africa, said Eugene Willemsen, who is moving to Cape Town from PepsiCo’s New York headquarters to oversee the region. “This transaction is all about growth. We are looking to expand our footprint,” he said by phone July 19.

PepsiCo offered 110 rand a share for Pioneer, ...

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