8 African Business August/September 2019
Business Intelligence Deals
PepsiCo has agreed to buy Pioneer Food Group in a $1.7bn deal
France’s Canal+ acquires Nollywood studio
South African government gives Eskom fresh loan
PepsiCo buys South Africa’s Pioneer Food Group
Kenya’s parliament has voted to nationalise Kenya Airways as it struggles under debts. The result was hailed by chairman Michael Joseph, who has been supportive of action to rescue the stricken airline, which is 48.9% government owned and has failed to return to profitability after a 2017 debt restructure. “It is not what we want, but what we need,” he told the Reuters news agency.
French pay-TV group Canal+ has acquired Lagosbased fi lm and television studio ROK in the fi rst international ac quisition in the Nigerian fi lm sector. ROK produces movies and TV series and owns a library of fi lms and animation programmes. The fi rm will produce Nollywood content, including movies and TV series, for existing audiences and French-speaking Canal+ viewers in Africa.
The South African government is to support troubled energy utility Eskom with an additional $4.2bn over the next two years in a bid to service its debt. The energy utility, which has been forced to implement blackouts this year, requires government injections to continue to provide the bulk of the country’s power. The fi rm has been dogged by allegations of past mismanagement.
Kenyan parliament votes to nationalise Kenya Airways
US food giant PepsiCo has agreed to buy South Africa’s Pioneer Food Group in a $1.7bn deal, increasing its manufacturing and distribution potential in the region. PepsiCo said that Pioneer Food Group’s brands, which include cereals and juices, would prove complementary to the company as it launches a new operating unit for sub-Saharan Africa. “Pioneer Foods forms an important part of our strategy to not only expand in South Africa, but further into sub-Saharan Africa as well,” said PepsiCo CEO and chairman Ramon Laguarta.