The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
CAPITAL MARKETS

Pepsi develops its thirst for Russian assets

Highlights growing importance of food sector; Part of growing M&A trend

US food and drink company PepsiCo has highlighted the strategic importance of the Russian market for big global companies with its plans to acquire a controlling stake in juice and dairy firm Wimm-Bill-Dann that will transform its position in the fast-growing beverages sector. Following the purchase, the Russian juice market will effectively be divided between Pepsi and its arch-rival, Coca-Cola.

In early December Pepsi announced a bid worth $3.8 billion for a 66% stake in Wimm-Bill-Dann, with an option to acquire the rest at a later date. The offer price for the majority stake valued the total company at $5.7 billion and was a 32% premium to outstandings when news of the planned acquisition was announced. Wimm-Bill-Dann stock surged on the news of the takeover bid, with the company’s Moscow-listed shares jumping 58% on the back of heavy trading volumes.

The transaction will establish PepsiCo as the largest food and beverage business in Russia and build on its presence in key markets in eastern Europe and central Asia. It also will raise PepsiCo’s annual global revenues from nutritious and functional foods from roughly $10 billion to $13 billion as part of its goal to build a $30 billion nutrition business by 2020.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree