NEW YORK (AP) -- PepsiCo Inc. on Wednesday said it struck a deal to buy 20 percent of Japan's largest snack company, with which it will produce and sell snacks and other foods in the Asian nation.
PepsiCo, the parent of Frito-Lay snacks and Quaker foods, said it will transfer its Frito-Lay Japan business plus an undisclosed amount of cash to Calbee Foods Company, which is based in Tokyo.
In return, Calbee will issue new stock to PepsiCo, which will result in the New York-based beverage and snack maker owning 20 percent of the company.
PepsiCo will also have a seat on Calbee's board. The deal is subject to Japanese government approval.
Together, PepsiCo and Calbee plan to produce and sell a wide range of snacks in Japan, such as potato chips, vegetable snacks, breakfast cereal and prawn crackers -- a popular munchie in Japan.
"We believe we have a huge opportunity to diversify our portfolio by offering products that reflect both Western and Japanese dietary cultures," said Indra Nooyi, PepsiCo chairman and CEO, in a statement announcing the deal.
Calbee CEO Yasuo Nakata said, "We believe we have a huge opportunity to diversify our portfolio by offering products that reflect both Western and Japanese dietary cultures."
In midday trading, Pepsico shares added 26 cents to $53.27.