SA’s 2017 credit rating cut spooked multinational from buying food giant for far more than PepsiCo’s offer price

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SA’s sovereign credit-ratings downgrade in April 2017 appears to have cost Pioneer Foods shareholders about R60 per share as it apparently spooked a large multinational company into abandoning months of takeover discussions with Pioneer, which was trading at about R176 at the time.

On Friday, the country’s second largest food group, with brands including Weet-Bix, Marmite, Sasko bread and Ceres juices, announced that US-based food and beverages giant PepsiCo was offering shareholders R110 a share...

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