PepsiCo to buy Israeli firm SodaStream for $3.2bn

The home carbonation product manufacturer previously attracted considerable criticism for operating a factory in an Israeli settlement in the West Bank.

MENA

2 min read

The New Arab & agencies

20 August, 2018

SodaStream headquarters outside Tel Aviv [Getty]

PepsiCo said Monday it will buy the Israeli SodaStream company that manufactures home carbonation products for $3.2 billion.

The firm, which previously became the target of the Boycott, Divestments and Sanctions Movement (BDS), had until 2015 operated a factory in the Ma'ale Adumim settlement in the West Bank.

Israeli settlements are illegal under international law.

Pepsi's purchase of SodaStream will see the beverage giant pay $144 per share for SodaStream's outstanding stock, a 32 percent premium over its average price of the past 30 days.

SodaStream offers consumers "the ability to make great-tasting beverages while reducing the amount of waste generated," PepsiCo chair and CEO Indra Nooyi said in a statement.

"Together, we can advance our shared vision of a healthier, more-sustainable planet," he added.

The language echoes SodaStream's CEO Daniel Birnbaum, who has tauted the eco benefits of the firm's product amid criticism of operating facilities in Israeli settlements and mistreating Palestinian workers.

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In January 2014, Oxfam accepted the resignation of Scarlett Johansson as ambassador after she also took up the role as brand ambassador of SodaStream. Oxfam at the time said that settlements deny the "rights of the Palestinian communities that we work to support".

Four years earlier, the EU ruled that SodaStream's "Made in Israel" label - which the company used to get exemptions on EU customs - was not valid because settlements are outside the scope of the EU-Israel trade agreement.

PepsiCo's purchase is still subject to a SodaStream shareholder vote, regulatory approvals and other conditions. However, the boards of directors of both companies have already approved the deal and closing is expected by January 2019.

PepsiCo has previously come under fire from BDS activists. PepsiCo is a joint owner of the US-based Sabra brand of hummus with Strauss, an Israeli multinational that supports the Golani Brigade that played a key role in the 2008-9 siege on Gaza during Operation Cast Lead.

Agencies contributed to this report.

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