PepsiCo Source: Google Images

U.S.-based beverage and snack maker PepsiCo is planning to acquire South Africa’s Pioneer Food Group for around $1.7 billion, the two companies said on Friday, as it targets expansion in Africa.

PepsiCo offered a cash consideration of 110 rand ($7.94) per Pioneer Foods ordinary share, a 56.5% premium as of July 12.

“This acquisition will help PepsiCo gain a solid beachhead for expansion into sub-Saharan Africa by boosting the company’s manufacturing and go-to-market capabilities, enabling scale and distribution,” PepsiCo said in a statement.

($1 = 13.8613 rand)

Reporting by Tanisha Heiberg; Editing by Jan Harvey