Remember yesterday when we told you it might be time to buy Russian dairy Wimm-Bill-Dann? It looks like Pepsi had the exact same idea. Watch for WBD to open 35% higher today.
Interestingly, despite its recent slide, WBD was only trading a little below its 30-day average yesterday, which shows that even a month ago — or longer, given the rate at which these cross-border deals naturally evolve — this company was looking attractively priced as a way for a multinational giant like Pepsi to get deeper into the Russian market.
WBD is best known for its yogurt and juice products and the deal will cement PEP’s already long-standing presence in the country.
Once the controlling stake is locked up, PEP plans to open a tender to buy the remaining 34% of the WBD shares out there.
It is a bit of a shame to see one of Russia’s best ADR-traded consumer opportunities head off the table, but the premium on this offer will be hard to pass up. This should only help drive the move into Moscow stocks.