Danish brewer Carlsberg said it had agreed to buy PepsiCo's bottlers in Armenia and Georgia, expanding its partnership with the US group as it increases its exposure to soft drinks, Reuters reports.

The value of the deals was not disclosed. They will expand Carlsberg's PepsiCo bottling partnership to ⁠17 markets. Carlsberg will buy Iberia Refreshments in Georgia and JI Pepsi Cola Bottler Armenia from Revery, taking over production, sales and distribution of PepsiCo's soft drinks in both countries.

The company said the two businesses would form a South Caucasus cluster with Azerbaijan, creating a platform to grow a broader beverage portfolio across ⁠the region.

"The main point for investors is not the two markets themselves, but the signal of an increasingly close relationship between Carlsberg and PepsiCo," ⁠Jyske Bank analyst Haider Anjum said in a note.

Anjum said the deals were unlikely to materially affect near-term ⁠revenue or earnings, but closer ties with PepsiCo could lead to broader cooperation and access ⁠to new markets. The Armenian acquisition is subject to approval from the country's government.