Prime Minister Binyamin Netanyahu praised the acquisition of Israeli company SodaStream for $3.2 billion by PepsiCo Monday.
"The recent major acquisitions of Israeli companies prove not only the technological capabilities that have been developed in Israel but the business capabilities as well," Netanyahu said. "I welcome this huge deal that will enrich the state treasury and also the important decision to keep the company in Israel."
PepsiCo, which produces not only Pepsi Cola but a wide range of snacks, beverages, and other food products ranging from Lipton Teas to Cheetos to Quaker brand oatmeal products, announced Monday morning its plans to acquire SodaStream at $144 a share – a 32% premium over SodaStream’s estimated stock value before the deal.
SodaStream, which was initially based in the town of Mishor Adumim, east of Jerusalem, relocated across the Green Line in 2015 to pre-1967 Israel following boycott threats, laying off some 500 Palestinian Authority residents it had employed.
The Israel-based company is best known for its home carbonation units, which allow consumers to carbonate their own water or soft drinks. SodaStream’s home carbonation units have competed with beverage producers like PepsiCo, allowing consumers to produce carbonated drinks on demand at a fraction of the price of traditional soft drinks.