Coca-Cola HBC in £2bn Africa takeover
London-listed bottling business Coca-Cola HBC is to acquire Coca-Cola Beverages Africa in a $3.4bn (£1.9bn) deal.
The cash-and-shares deal, which will be part-funded by a new bridge debt facility, will see a transfer of the ownership of the African bottling business after 85 years of ownership by the South African Gutsche family.
The move will make Coca-Cola HBC the world’s second largest bottling partner of the Coca-Cola Company, which also owns drinks brands Fanta, Sprite and Schweppes.
Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC, said: “We have a deep understanding of the compelling proposition Africa presents.
“It has a sizable and growing consumer base, and there are significant opportunities to increase per capita consumption.”
The deal will see Coca-Cola HBC acquire a 75 per cent stake in Coca-Cola Beverages Africa, with an option to acquire the remaining 25 per cent at a later date.
The takeover is expected to be concluded by the end of next year, subject to regulatory approval.
Coca-Cola HBC shares fell 4 per cent to 3,438p after London markets opened on Tuesday. The stock is up by more than a quarter since the start of the year.
Dual listing on the cards
Coca-Cola Beverages Africa operates in 14 markets across Africa, representing around 40 per cent of Coca-Cola system volumes sold across the continent.
Coca-Cola HBC already has a major presence in the African market, having first set up a business in Nigeria nearly 75 years ago and adding an Egyptian subsidiary in 2022.
The company said it would be seeking a secondary listing of its shares on the Johannesburg Stock Exchange if the deal completes to “underpin its commitment to South Africa and the African continent.”
The takeover would see the enlarged Coca-Cola HBC deliver volumes of as much as 4 billion unit cases annually, with turnover of €14.1bn (£11.4bn).