In a landmark acquisition deal said to be worth R3 billion, Varun Beverages (VBL) of India has bought the entire stock, along with the wholly-owned subsidiaries of BevCo, one of South Africa's leading independent manufacturers and distributors of carbonated soft drinks.
A statement by VBL, the largest bottler of Pepsi and beverages belonging to the PepsiCo holding company, said: “The board of directors of the company at their meeting held today (May 14) inter-alia considered and approved to acquire a 100% stake in the business conducted by The Beverage Company (Proprietary) Ltd, South Africa.”
It includes “an option to accept minority co-investment from a large equity fund, subject to regulatory and other approvals (if any) including but not limited to PepsiCo Inc and Competition Commission South Africa”.
The acquisition of BevCo will give VBL a lion’s share of the soft drinks distribution market based in South Africa, including Lesotho and Eswatini.
It includes distribution rights to Namibia and Botswana.
Apart from producing Pepsi and brand derivatives from five manufacturing facilities in Johannesburg, Durban, East London and Cape Town, BevCo also manufactures 7UP Free, Mirinda and Mountain Dew on behalf of PepsiCo.
The takeover purchase BevCo secures VBL’s presence in Southern Africa, the largest soft drinks market on the continent.
