Pepsi has acquired Pioneer Foods Group Limited, the company that owns Nigerian bread brand, Butterfield. The deal is the first major international purchase under Pepsi’s new Chief Executive Officer, Ramon Laguarta.
The American beverage company coughed out $1.8 billion to seal the acquisition of Pioneer Foods, almost a year after it acquired Israel’s SodaStream International Ltd in a $3.2 billion buyout deal in August 2018.
A shock move: The deal came as a surprise, as both Pepsi and Pioneer Foods had ended their partnership four years ago.
What this means: The deal will give Pepsi ownership right of Butterfield and sausage-roll brand, Yum Yum, all of which are produced by Food Concepts Pioneer in Nigeria. Food Concepts Pioneer is a subsidiary of Pioneer Foods Group based in South Africa.
It also expands Pepsi’s footprint in Kenya and South Africa. The deal will as expected, see Pepsi takeover all brands under Pioneer Foods Group, including its Corn Flakes and Cereal brands.
The expansion deal with Pioneer provides more manufacturing facilities to Pepsi and milled maize needed for their snacks.
What’s in it for Pioneer? While the deal revives the partnership of both companies, Pioneer will bottle Pepsi products in South Africa, and shareholders are dragged out of their worries, as uncertainty hangs over the company’s stock price on the Johannesburg Stock Exchange.
Pepsi took advantage: The deal came at the time Pioneer Foods Group was struggling with consumer-spending which is dropping in South Africa. The slump in consumer spending has been caused by the country’s high unemployment and rising living costs – and this reflected on the company’s first-half profit which declined.
Also, the stock price of Pioneer Foods Group is falling in the South African capital market. Three weeks before the deal was announced, Pioneer was trading at 68 Rand (South African currency), the lowest since March 2013.
Although Pioneer Foods Group ended this week with 102.50 Rand after news of the acquisition broke, but Pepsi had offered shareholders 110 Rand a share for Pioneer which was 56% premium at the time of negotiations.
This acquisition offer came at a time shareholders didn’t know when the slump of stock price would last or if it would continue with the trading environment projected to still remain challenging.
Trump to return to social media with his own platform in 2 months
Over 2 months after he was banned from Twitter, Facebook, others, Donald Trump is working on making a return.
Former US President, Donald Trump, will be back on social media in the near future, over 2 months after he was banned from Twitter, Facebook, and others.
This follows plans by the former President to launch his own social media platform within the next 2 or 3 months.
This disclosure was made by Trump’s Senior Adviser, Jason Miller, on Sunday, March 22, 2021, during a chat with Fox News’ #MediaBuzz.
What Donald Trump’s Senior Adviser is saying
Jason Miller, who was a spokesman for Trump’s 2020 campaign, told the media network that the former President would soon get back to social media space with a new platform of his own that would completely redefine the game.
Miller, while talking to Fox News, said, “I do think that we’re going to see President Trump returning to social media in probably about two or three months here, with his own platform. And this is something that I think will be the hottest ticket in social media; it’s going to completely redefine the game, and everybody is going to be waiting and watching to see what exactly President Trump does.”
Although he did not provide more in terms of details, Miller revealed that Trump had been having high-powered meetings at his Florida resort, Mar-a-Lago, with various teams regarding the venture, and that numerous companies had approached Trump.
Miller said the new platform was going to be big, while also predicting that Trump would draw tens of millions of people.
In case you missed it
- It can be recalled that former President Trump was banned from Twitter after the January 6, attack on the Capitol by his supporters. He was accused of inciting his supporters after he rejected the US Presidential election result which he claimed was a fraud.
- Twitter last week said it would seek public input on when and how it should ban world leaders, saying it was reviewing its policy and considering whether leaders should be held to the same rules as other users.
Tesla investor sues Elon Musk for causing problems with his tweets
An investor in the US electric car maker, Tesla, has sued the company’s founder, Elon Musk over alleged erratic tweets.
Elon Musk, the controversial multi-billionaire is being sued by an investor in his company. Musk is being accused by the investor of unsettling the markets and exposing his investors to high risk with his “erratic tweets”.
Chase Garrity an investor in the US electric car maker, Tesla, has sued the founder of the company for his erratic Twitter messaging which according to him, has exposed the company to high legal risks and billions in price losses.
The 105-page lawsuit was published in the US court of Delaware and it accuses Musk of violating the settlement negotiated with the US Securities and Exchange Commission in 2018.
The lawsuit also includes the entire Tesla board and its supervisory body for not calling Musk to order.
In May 2020 Musk caused a 14 billion dollar loss in market value on a single trading day with a series of unguarded tweets. He tweeted about Tesla’s market value being too high and how he was going to dispose of all physical assets.
The lawsuit stated that any further unbridled tweet from Musk would have dire consequences for Tesla’s future funding opportunities.
What you should know
- Remember Nairametrics posted a story on how Musk tweets once again caused a serious ripple effect in the crypto world. His tweet helped Bitcoin gain $6000. He later invested heavily in Bitcoin.
- Manager Magazine stated that analysts are not comfortable with such a move and view it as some kind of manipulation.
- Musk in April last year posted a joke photo of Tesla going bankrupt. This once again unsettled investors.
- Tesla Management has not released a statement on this fresh lawsuit.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- Cornerstone Insurance Plc notifies stakeholders of late submission of financial statements.
- NSE approves delisting of 11 Plc shares.
- Berger Paints Nigeria Plc reports a 67% decline in Profits in FY 2020.
- MTN Nigeria raises N73.5 billion from CP Issuance to finance operations.
- Jaiz Bank proposes dividend worth N884 million for shareholders.