South Africa’s Competition Commission has approved PepsiCo’s acquisition of Pioneer Foods through its South African subsidiary Simba.

In July, PepsiCo agreed to acquire all outstanding shares of the South African food and beverage producer for $1.7bn.

Pioneer Foods sells cereals, snacks and juices under brands, including Weet-Bix, Liqui-Fruit and Ceres.

PepsiCo chairman and CEO Ramon Laguarta said: “We are absolutely thrilled to join forces with Pioneer Foods, one of South Africa’s leading food and beverage companies.

“Pioneer Foods represents a differentiated opportunity for PepsiCo and allows us to immediately scale our business in Africa. Pioneer Foods forms an important part of our strategy to not only expand in South Africa but further into sub-Saharan Africa as well.”

The deal forms part of Pepsi Co’s plan to strengthen its presence in sub-Saharan Africa by improving its manufacturing and go-to-market capabilities.

The merging parties have agreed to implement a broad-based black economic empowerment (B-BBEE) ownership plan. They will continue to operate associated production facilities in South Africa.

PepsiCo announced that it intends to invest in the merged firm to expand its operations in South Africa over the next five years.

The two companies have also agreed to increase the presence and sales of their brands across the country and in global markets.

In January, the UK’s Competition and Markets Authority (CMA) opened an investigation into this acquisition. It intimated the two companies by sending notices.

CMA said that it will announce its decision on 26 March. It has invited comments from all interested parties.