Varun Beverages Ltd.’s one of the largest franchise bottlers of PepsiCo globally, board of directors confirmed the acquisition of The Beverage Company and its subsidiaries to extend its geographical footprint in South Africa.
The company will acquire 100% stake for Rs 1,320 crore in the South African soft-drink maker, along with its wholly owned subsidiaries with “an option to accept minority co-investment from large equity fund”, an exchange filing said.
The acquisition is subject to mandatory consent from PepsiCo Inc. and the Competition Commission of South Africa.
The Beverage Company is involved in the business of manufacturing and distributing of non-alcoholic beverages in South Africa. It has franchise rights from PepsiCo in South Africa, Eswatini and Lesotho. It also holds distribution rights for Namibia and Botswana.
The company also entered in an agreement with the government of Jharkhand on Tuesday by signing a Memorandum of Understanding, for a proposed manufacturing plant in Patratu, with a total capital outlay of Rs 450 crore.