Varun Beverages, a subsidiary of Ravi Jaipuria-led Beercafe, has extended the deadline for the acquisition of PepsiCo’s Ghana bottling operations to March 31, 2023. The Indian beverage company had initially planned to complete the deal by December 31, 2022, but has now pushed it back by three months.
The reason for the extension is reportedly due to certain regulatory and governmental hurdles that need to be cleared before the deal can be finalized. The acquisition is expected to be one of the largest in the African market, with a potential annual value of over $100 million.
Varun Beverages, which has a significant presence in India, has been expanding its operations across the globe, including in Africa, Southeast Asia, and the Middle East. The company has also been focused on diversifying its product portfolio, with a range of soft drinks, juices, and water-based beverages.
The acquisition of PepsiCo’s Ghana bottling operations is seen as a strategic move by Varun Beverages to strengthen its presence in the West African market. The operation, which is one of the largest bottling plants in Ghana, produces and distributes a range of beverages, including Pepsi, 7 Up, and Mirinda, among others.
The deal is also expected to create job opportunities and generate revenue for the Ghanaian economy. The plant currently employs over 500 people and is a significant employer in the country.
The extension of the deadline will allow Varun Beverages to finalize the regulatory approvals and complete due diligence, ensuring a smoother transition of the business. The company has already received necessary regulatory approvals from the Ghanaian government, and the deal is expected to be completed by the end of March 2023.
The acquisition is a significant milestone for Varun Beverages, marking its entry into the Ethiopian market, which has been a key focus area for the company. The deal is expected to be a game-changer for the company, providing it with a strong foothold in the African market and enhancing its global footprint.