PepsiCo Inc said it has received approval from the South African Competition Commission to acquire South African-based Pioneer Foods. The Commission has recommended to the country’s Competition Tribunal the approval of the proposed transaction in which Simba (Pty) Ltd, a subsidiary of PepsiCo, intends to acquire Pioneer Foods Group Limited subject to certain conditions.

PepsiCo, through Simba, supplies several ready-to-eat products in South Africa under well-known brands which include Simba, Lays, Dorito’s, NikNaks and Fritos.

Pioneer Foods is a South African producer and distributor of a range of branded food and beverage products. It operates mainly in South Africa, providing wholesale, retail and informal trade customers with its products and exports to more than 80 countries. Its food brands include Sasko, White Star, Weetbix, Safari and Wellingtons, while its beverage brands include Ceres, Liquifruit and Fruitree.

Through its acquisition of Pioneer Foods, PepsiCo gains a foothold for expansion into the rest of Africa. PepsiCo will gain brands and manufacturing facilities in Nigeria, Kenya, and South Africa.

In 2015, Pioneer Food acquired a 50.1% stake in the Baked Goods Division of Food Concepts Plc, a Nigerian firm and owners of Chicken Republic, Butterfield Bakery and Free Range Farms as part of the South African firm’s expansion drive into the Nigerian market. Its brands include Weet-Bix, Liqui-Fruit and Ceres. With the acquisition by PepsiCo, it gains ownership rights of Butterfield Bakery, sausage-roll, and Yum Yum brands, all of which are produced by Food Concepts Pioneer in Nigeria.