Coca-Cola HBC to acquire 75% stake in CCBA in $2.6bn deal
Coca-Cola Hellenic Bottling Company (Coca-Cola HBC) has announced that it has agreed to buy a majority stake in Coca-Cola Beverages Africa (CCBA) in a deal valued at $2.6 billion to bolster its African presence.
The company has also entered an option agreement to purchase the remaining 25 percent at a later stage.
“We’re very excited to announce that Coca-Cola HBC has agreed to acquire 75 percent majority shareholding in Coca-Cola Beverages Africa with the long-term path to full ownership in the coming years,” said CEO Zoran Bogdanovic in a video on the company’s official LinkedIn page on Tuesday.
Bogdanovic said that the acquisition will be subject to regulatory approvals and the deal is expected to be completed next year, stressing that Africa remains an important part of the beverage giant’s story.
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The deal will see Coca-Cola Beverages Africa become the second-largest Coca-Cola bottling partner globally by volume.
Africa is becoming a leading target for expansion due to its youthful population and the vast opportunities the numbers mean to the beverage market. The company said 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 deal is expected to be funded using a €2.5 billion bridge financing facility, and the issuance of Coca-Cola HBC shares to the Gutsche Family Investment Company, amounting to 5.47 percent of the enlarged entity.
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Coca-Cola Beverages Africa supplies products into 14 African markets, serving an estimated 450 million consumers across 800 thousand customer outlets. This represents roughly 40 percent of all products owned by Coca-Cola that are sold on the continent by volume.
The company, which began operations in Nigeria in 1951, also expanded its business into Egypt in 2022 in line with its African expansion strategy.
“This acquisition is about growth. And we know investment is the key to unlocking growth. We also have plans to pursue secondary listing for CCH on the Johannesburg Stock Exchange,” the CEO said.
