PepsiCo’s largest franchise in the world outside the US, Varun Beverages Ltd, on Wednesday, March 27, announced that it has completed the acquisition of the South African company, The Beverage Company Proprietary Limited, along with its subsidiaries, collectively known as ‘Bevco’.
In a stock exchange filing, Varun Beverages said that as of March 26, 2024, Bevco has become a subsidiary of Varun Beverages, on receiving all the required approvals, including from PepsiCo Inc, Competition Commission South Africa, among others.
Varun Beverages has also issued a ccorporate guarantee of an amount of ZAR 1,500 million on behalf of its subsidiary, The Beverage Company Proprietary Ltd, South Africa.
The corporate guarantee is valid for not longer than 42 months and is in favour of FirstRand Bank Ltd, acting through its Rand Merchant Bank division in order to secure credit facilities extended to Bevco.
In December 2023, Varun Beverages had announced the acquisition of South Africa’s Bevco for ₹1,320 crore. The company’s board approved the acquisition of 100% stake in The Beverage Company, South Africa, along with its wholly-owned subsidiaries.
The strategic acquisition of Bevco aligns with Varun Beverages’ vision for expansion, enabling the company to tap into the South African company’s established market presence and leverage its strong ties with PepsiCo Inc, it said.
The deal positions Varun Beverages to strengthen its position in the African beverage market, marking a significant milestone in the company's growth trajectory, stated the CNBC-TV18 report.
Varun Beverages shares were trading 0.7% lower at ₹1,391.85 per piece on the BSE at 12:20 pm on Wednesday.
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