27 March 2024 – Varun Beverages Ltd, PepsiCo’s largest franchise outside the US, has finalized the acquisition of The Beverage Company Proprietary Limited, commonly known as ‘Bevco’, marking a significant milestone in its expansion strategy.
In a recent stock exchange filing, Varun Beverages disclosed the successful completion of its acquisition of Bevco, a leading South African company, along with its subsidiaries. The acquisition, valued at ₹1,320 crore, received all necessary approvals, including those from PepsiCo Inc and the Competition Commission South Africa.
As part of the acquisition, Varun Beverages issued a corporate guarantee of ZAR 1,500 million on behalf of its subsidiary, The Beverage Company Proprietary Ltd, South Africa. This guarantee, valid for up to 42 months, secures credit facilities extended to Bevco by FirstRand Bank Ltd.
The strategic acquisition of Bevco aligns with Varun Beverages’ vision for expansion, enabling the company to leverage Bevco’s established market presence and strong ties with PepsiCo Inc. This move strengthens Varun Beverages’ position in the African beverage market, underscoring its commitment to growth and market leadership.
According to CNBC-TV18, this deal represents a significant milestone in Varun Beverages’ growth trajectory, positioning the company for enhanced market penetration and increased competitiveness in the African region.
Despite the acquisition news, Varun Beverages’ shares experienced a slight decline, trading 0.7% lower at ₹1,391.85 per piece on the BSE as of 12:20 pm on Wednesday.
