Pepsi to buy majority stake in Russia's Wimm-Bill-Dann

Soft drinks maker PepsiCo has said it is buying a 66% stake in Russian dairy and fruit juice maker Wimm-Bill-Dann for $3.8bn (£2.4bn).

PepsiCo said it would also seek to buy the remaining shares in Wimm-Bill-Dann when the initial deal is completed.

The deal is the biggest foreign investment in Russia outside the energy sector.

"Wimm-Bill-Dann is a terrific business with significant opportunities," said Zein Abdalla of PepsiCo Europe.

In a statement, PepsiCo said: "The transaction will establish PepsiCo as the largest food and beverage business in Russia, make it a leader in the country's fast-growing dairy category and build its presence in key markets in eastern Europe and central Asia,"

The firm added that the deal would increase its annual revenues to nearly $13bn, putting it on course to achieve its strategic goal of building a $30bn nutrition business by 2020.

Source :  BBC