Indofood CBP Sukses Makmur (ICBP) announced on Friday that two of its subsidiaries have bought out the shares of Pepsi-Cola IndoBeverages (PCIB) for $30 million.
The acquisition was made through Indofood Asahi Sukses Beverage (IASB) and Asahi Indofood Beverage Makmur (AIBM), both of which are ventures between ICBP and a Singapore-based subsidiary of Japan's Asahi Group Holdings Ltd, Asahi Group Holdings Southeast Asia Pte. Ltd.
IASB and AIBM will acquire 15,000 PCIB shares and 264,113,930 PCIB shares respectively, an official ICBP press release said.
"As a group we have engaged in close cooperation with PepsiCo for a long time, in both the soft drink as well as the light snack business. I am very happy that PCIB will be consolidated into a joint venture between ICBP and Asahi," ICBP president director and CEO Anthoni Salim said in the release.
PCIB itself is a joint venture between Gapura Usahatama, part of the Salim Group, and Seven-UP Nederland B.V., an affiliate of Pepsi Co. Inc. PCIB covers the sales and distribution and, in some cases the production too, of non-alcoholic beverages such as Pepsi, 7-Up, Tropicana Twister, Fruitamin and Tekita.
In 2012, it booked a net sale revenue of Rp 714.4 billion compared to Rp 714.8 billion in 2011 and Rp 665.8 billion in 2010.
Salim added that the cooperation between ICBP, Asahi and PepsiCo will allow his corporation to reach a better position "in becoming one of the key players in the non-alcoholic beverage industry in Indonesia and accelerate the growth of the company."
Naoki Izumiya, President and COO of Asahi Group Holdings Ltd, said that the venture was a major move into the future and will help the group quicken its efforts in building a wider and more complete portfolio of products in the fast growing non-alcoholic beverage market in Indonesia.
"Through the forces of these three companies, we hope to soon present quality products that can meet the taste of consumers in Indonesia," Izumiya said without giving further details.