CMA launches inquiry into PepsiCo acquisition of Pioneer Foods

The Competition and Markets Authority has announced the launch of its merger inquiry into the acquisition of South Africa’s Pioneer Foods by PepsiCo.

Pretoria-based Pioneer Foods exports branded food and beverage products to 80 countries in Africa and beyond. In the UK, the company produces and supplies a range of breakfast cereals and fruit snacks.

PepsiCo agreed to buy Pioneer Foods for about 24.4 billion rand (£1.2 billion) in July 2019, in a bold move into the African market.

The initial investigation by the CMA will decide whether to refer the merger for an in-depth investigation. The decision in this regard is expected by 26 March.