Varun Beverages Extends SBC Acquisition Deadline: A Strategic Move

Varun Beverages has extended the deadline for completing its acquisition of Ghana-based SBC Beverages by a month, to March 31, 2025. Originally announced in November 2024, the transaction is valued at USD 15.06 million. The extension aims to finalize the purchase alongside other PepsiCo transactions.

Varun Beverages, the largest franchise bottler for PepsiCo, announced on Tuesday that it is extending the deadline for the completion of its acquisition of SBC Beverages Ghana. Initially set for February 2025, the new deadline is now March 31, 2025.

The company had entered into a share purchase agreement last November to acquire 100% of SBC Beverages Ghana for USD 15.06 million. The acquisition is part of a larger deal also involving the Tanzania Bottling Company SA, collectively priced at USD 154.50 million and USD 15.06 million, respectively.

Varun Beverages had raised Rs 7,500 crore in 2024 through a Qualified Institutional Placement (QIP) to fund debt repayment and acquisitions like this one. Despite the strategic nature of the acquisition, shares of Varun Beverages settled at Rs 476.40 on Tuesday, marking a 4.70% decrease from the previous close.