Coca-Cola to buy AB InBev's stake in African bottling operations for $3.15 billion
The Coca-Cola Co. has announced it will purchase Anheuser-Busch InBev’s (AB InBev) 54.5% equity stake in Coca-Cola Beverages Africa (CCBA) for $3.15 billion.
The Coca-Cola Co. has announced it will purchase Anheuser-Busch InBev’s (AB InBev) 54.5% equity stake in Coca-Cola Beverages Africa (CCBA) for $3.15 billion. CCBA includes the countries of South Africa, Namibia, Kenya, Uganda, Tanzania, Ethiopia, Mozambique, Ghana, Mayotte, and Comoros. In addition, the companies have reached an agreement in principle for Coca-Cola to acquire AB InBev’s interest in bottling operations in Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador, and Honduras for an undisclosed amount. The transactions are subject to the relevant regulatory and minority approvals and are expected to close by the end of 2017.
Coca-Cola plans to hold all of these territories temporarily until they can be refranchised to other partners. The company’s intent is to account for the acquired stakes as a discontinued operation for reporting purposes.
“We are pleased to have reached an agreement quickly that is in everyone’s best interests,” said Muhtar Kent, chairman and CEO of The Coca-Cola Co. “We will move forward with our long-term strategic plan in these important growth markets. We are continuing negotiations with a number of parties who are highly qualified and interested in these bottling territories and look forward to refranchising these territories as soon as practical following regulatory approval.”