Global food and beverage company PepsiCo has signed a share purchase agreement to acquire a significant stake in Chinese firm Natural Food International.

Natural Food International is engaged in the production of food using grains, nuts and beans. The company’s powder products are produced from ingredients such as black sesame, walnuts, goji berries and chia seeds.

As per the terms of the agreement, PepsiCo intends to acquire a 26% stake in Natural Food International for $131m.

In a press release, Natural Food International said that PepsiCo has agreed to purchase 566.51 million shares at HK$1.8 ($0.23) per share.

Completion of the deal is expected to take place on 30 July.

once the transfer concludes, PepsiCo will become the second-largest shareholder of Natural Food International.

The deal is PepsiCo’s first strategic investment in the Chinese market.

Last year, the company generated more than $64bn in net revenue, driven by a food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana.

The company’s overall portfolio has 22 brands, which generate more than $1bn each per retail sales year.

Earlier this month, PepsiCo agreed to acquire all outstanding shares of South African food and beverage producer Pioneer Foods Group in a deal valued at $1.7bn.

The company will pay R110 for each Pioneer share, which represents a premium of 56% of the share price measured over the last month.

Related:

PepsiCo to acquire South Africa’s Pioneer Foods in $1.7bn deal

Pepsi accelerated the distribution of healthy food by investing 900 million yuan in grain mills

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