U.S.-based PepsiCo struck a deal to buy South Africa’s Pioneer Food Group for $1.7 billion. The companies jointly announced the deal Friday morning much to the delight of Pioneer’s stockholders.

The deal lifted Pioneer’s shares and boosting a sector that has been hit by drought and tough trading conditions.

PepsiCo sees Pioneer’s product portfolio of fruit juices, snacks, cereals and other items as complementary to its own. The company says the acquisition of Pioneer will help PepsiCo to expand in sub-Saharan Africa by adding manufacturing and distribution capabilities.

“Pioneer Foods forms an important part of our strategy to not only expand in South Africa but further into sub-Saharan Africa as well,” PepsiCo Chairman and CEO Ramon Laguarta said in a statement.

PepsiCo has offered 110 rand ($7.94) per Pioneer ordinary share in what would be its second-largest deal since 2010, the companies said, with the news lifting the South African company’s shares by 29.32% to more than 100 rand.

“It’s a vote of confidence in South Africa at a time when we really need it,” Pioneer CEO Tertius Carstens told Reuters.

“It’s almost a signal to other overseas companies that we are open for business. If PepsiCo is willing to put money down it may lift sentiment of other foreign investors that might come looking at South Africa for bargains,” said Greg Davies, equities trader at Cratos Capital.

Pioneer, whose brands include Weet-Bix cereal, Liqui Fruit juice and Sasko bread, is the latest consumer goods firm to be the target of a buyout after South Africa’s Clover Industries, which processes products including yogurt, beverages, and olive oil, began takeover talks with a consortium of companies called Milco SA last year.

Pioneer exports to more than 80 countries. Its deal with PepsiCo is conditional on regulatory approvals.