U.S. soft drinks company PepsiCo agreed Thursday to buy Russia's largest private producer of packed milk, mineral water and juices, Wimm-Bill-Dann (WBD) for 5.8 billion U.S. dollars.
According to one of WBD's co-owners, Daviv Jakobashwili, the deal was signed after only three-week negotiations. In order to close the deal, Russian anti-trust agency should gave its approval.
Shares of the WDB rose 31.7 percent immediately upon the announcement.
WBD market capitalization before its shares' rally on Thursday was 4.2 billion dollars. That means PepsiCo purchases the Russian company with 38-percent market premium.
WBD operates 36 factories in 25 Russian towns. One of its largest shareholders spent nine years in prison for armed robbery. PepsiCo has been on the Russian market since 1974.
According to one of WBD's co-owners, Daviv Jakobashwili, the deal was signed after only three-week negotiations. In order to close the deal, Russian anti-trust agency should gave its approval.
Shares of the WDB rose 31.7 percent immediately upon the announcement.
WBD market capitalization before its shares' rally on Thursday was 4.2 billion dollars. That means PepsiCo purchases the Russian company with 38-percent market premium.
WBD operates 36 factories in 25 Russian towns. One of its largest shareholders spent nine years in prison for armed robbery. PepsiCo has been on the Russian market since 1974.
