Ramon Laguarta, President of PepsiCo Eastern Europe, told Reuters the company had its eye on the neighbouring markets of Ukraine, Kazakhstan and Central Asia.
"WBD in the past has been buying local small companies to access raw milk. I think we will not change that strategy," Laguarta said in an interview on the sidelines of the opening of a $110 million potato chip factory in the southern city of Azov.
"We will continue to go for regional opportunities that may exist to continue expanding our access to raw milk ... Outside of Russia, the same; we plan to expand the dairy business beyond Russia," he said.
PepsiCo has submitted a request to the Russian anti-monopoly service to buy WBD, Russia's largest dairy producer, and expects its decision within two to four months. But Laguarta said the deal had been taken positively at the highest level.
"We have seen Mr. (Prime Minister Vladimir) Putin to inform him of our intentions. He received that with a positive reaction," Laguarta said.
PepsiCo will pay $3.8 billion for a 66 percent stake in WBD, which is also Russia's second-biggest juice maker, implying a 32 percent premium to the market price.
"We think that's a fair premium," Laguarta said.
"Because of big growth opportunities of this business. That is a premium for an emerging market that will keep growing double-digit within 10-20 years ... We see it as a very fair valuation."
The deal follows rival Coca-Cola's acquisition of Russia's No.4 juice maker Nidan this year, which put Coke ahead of PepsiCo in their long-running battle for dominance in the Russian market. (Reuters)
