Suntory Beverage & Food Asia has signed an agreement to acquire a 51% share in International Refreshment (Thailand), a beverage operation of PepsiCo.

Valued at around JPY33bn ($289.44m), the acquisition is expected to be completed by March next year.

Thailand is the one of the largest beverage markets in Southeast Asia and is expected to continue expanding due to strong economic growth. PepsiCo’s business platform in the country is characterised by brand equity, manufacturing facilities, and sales networks.

Through the acquisition, SBF intends to expand its beverage business in the country and strengthen PepsiCo’s foothold in the domestic market.

“SBF intends to expand its beverage business in the country and strengthen PepsiCo’s foothold in the domestic market.”

SBF and PepsiCo will then form a joint venture (JV) to leverage their strengths, including SBF’s expertise in development of products and PepsiCo’s business platform.

Established in 2003, International Refreshment has share capital of about THB9bn ($271.47m).

Headquartered in Japan, SBF covers non-alcoholic beverage and food business. Last year, the company witnessed consolidated sales of JPY1,410.8bn ($12.37bn).

The transaction is subject to approval from relevant authorities following reviews relating to the anti-trust regulations.