Coca-Cola Hellenic Bottling Company (Coca-Cola HBC) has announced that it has agreed to purchase a majority stake in Coca-Cola Beverages Africa (CCBA) in a $2.6 billion deal to expand its African presence.
The company has also entered into an option agreement to purchase the remaining 25 per cent at a later stage.
“We are very pleased to announce that Coca-Cola HBC has agreed to acquire a 75 percent majority stake in Coca-Cola Beverages Africa, with a long-term path to full ownership in the coming years,” CEO Zoran Bogdanovic said in a video on the company's official LinkedIn page on Tuesday.
Bogdanovic said the acquisition would be subject to regulatory approval and the deal was expected to close next year, stressing that Africa remains an important part of the drinks giant's story.
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The deal will make Coca-Cola Beverages Africa the second largest Coca-Cola bottling partner by volume globally.
Africa is becoming a major target for expansion due to its young population and vast opportunities for the beverages market. “The combined operations will supply two-thirds of The Coca-Cola Company's beverages sold across the continent, serving more than 50% of the total population,” the company said.
The deal is expected to be financed using a €2.5 billion bridge financing facility, and will see Coca-Cola HBC shares issued to Gutsche Family Investment Company, which owns 5.47 percent of the expanded entity.
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Coca-Cola Beverages Africa supplies products to 14 African markets and serves an estimated 450 million consumers at 800 thousand customer outlets. This represents approximately 40 percent of all Coca-Cola-owned products sold on the continent by volume.
The company, which began operations in Nigeria in 1951, also expanded its operations to Egypt in 2022 in line with its African expansion strategy.
The CEO said, “This acquisition is about growth. And we know investment is the key to unlocking growth. We also have plans to pursue a secondary listing for CCH on the Johannesburg Stock Exchange.”
