Pepsico has agreed to buy top Russian top juice maker Lebedyansky for $1.5 billion to $2 billion (€1.09 - €1.46 billion), according to reports today.
It was reported the deal would take place before the end of the year, and that Pepsico would buy over 76 per cent of Lebedyansky, implying a possible premium to its market capitalisation, which at Friday's closing price was $1.95 billion for the whole company.
The news sent shares in Lebedyansky up 7 per cent to 2,600 roubles (€74.75).
Pepsico controls around a fifth of the Russian soft drinks market and around a third of potato chip sales, but it has just 2 per cent of the Russian juice market through the Tropicana brand.
Pepsico also has no juice-producing assets in Russia, and Lebedyansky, which controls over 30 per cent of the Russian juice market, is seen as an attractive target for the beverage giant.
Analysts said the deal could have become more likely after private equity group Lion Capital agreed to buy Pepsico's previous target, Nidan Soki, Russia's third largest fruit juice maker.