The Competition Commission South Africa conditionally approved PepsiCo’s US$1.7 billion takeover of food and drinks producer Pioneer Food Group on Tuesday, February 11, stating it is unlikely to lessen competition in relevant markets.
PepsiCo struck a deal to buy Pioneer in July, lifting the target firm’s shares and boosting a sector that has been hit by drought and tough trading conditions.
The Commission recommended that the Competition Tribunal, which makes the final decision, approve the merger subject to public interest commitments, it said in a statement.
Those include a moratorium on merger-related job cuts for a certain period, and the creation of additional positions at the merged firm.
The company is also required to invest in the operations of the merged company and the agricultural sector, and establish an enterprise development fund.
Full Content: CompCom
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.