PepsiCo is buying carbonated drink company SodaStream in a $3.2bn (£2.5bn) deal that aims to reduce Pepsi’s reliance on its signature fizzy drink, as well as push its environmental credentials.

PepsiCo has agreed to pay $144 per share in cash for the Israeli company, 11% up on its closing share price on Friday (17 August), after better-than-expected results from the Israeli company,

SodaStream, which claims it is the largest sparkling water brand in the world, provides machines that enable consumers to make their own fizzy drinks or flavoured waters – meaning there is less need to buy bottles of drink.

PepsiCo chairman and CEO Indra Nooyi says: “PepsiCo and SodaStream are an inspired match. Daniel [Birnbaum, CEO] and his leadership team have built an extraordinary company that is offering consumers the ability to make great-tasting beverages while reducing the amount of waste generated.

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