PepsiCo, Inc. ( PEP ) shares are trading relatively flat on Tuesday in the premarket session.

PepsiCo ( PEP ) is engaged in advanced discussions to purchase Siete Foods, a tortilla-chip manufacturer, for over $1 billion,  reported The Wall Street Journal, citing people familiar with the matter.

An announcement regarding the acquisition of the privately held business could come soon, as long as the negotiations proceed smoothly, the report read.

Reuters noted in a news report that the acquisition occurs amid strong deal activity in the U.S. packaged food industry. Companies aim to grow their operations while inflation-strained consumers reduce spending and turn to private-label brands.

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For PepsiCo ( PEP ), the acquisition aligns with its commitment to providing healthier snack options by reducing sodium, saturated fat, and sugar levels in its chips. Siete offers a variety of products, including tortillas made from almond flour, The Wall Street Journal added.

In addition, Pepsi’s recent chip-related acquisitions include Bare Foods, a producer of baked fruit and vegetable snacks, in 2018, and BFY Brands, the creator of PopCorners snacks, shortly thereafter.

According to Benzinga Pro, PEP stock has lost over 1% year to date. Investors can gain exposure to the stock viaiShares U.S. Consumer Staples ETF and First Trust Nasdaq Food & Beverage ETF ( FTXG ) .

Price Action: PEP shares are trading higher by 0.01% to $170.06 premarket at last check Tuesday.

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