PepsiCo will buy a 76.1% stake in OAO Lebedyansky, Russia's top juice maker Lebedyansky for $1.5B-$2B, Russia's Kommersant business daily reported Monday. The upper end of the range would be a premium to the whole company's market capitalization, which was $1.95B on Friday as the shares traded at a record high. The acquisition of Lebedyansky, which controls more than 30% of Russia's juice market, was expected to be completed by year-end. Pepsico has about 20% of the country's soft drink market, but its Tropicana unit controls just 2% of the juice business. The company has no juice-producing assets in the country. Pepsi rival Coca-Cola controls more than 20% of the Russian juice market. Lebedyansky declined to comment, PepsiCo was unavailable. Some 76% of Lebedyansky is controlled by a group of Russian businessmen, including the company's chairman Yuri Bortsov. PepsiCo was advised by Deutsche Bank, Kommersant said.
Sources: Dow Jones, Reuters
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Earnings call transcript: PepsiCo Q2 2007
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