Coca-Cola Hellenic Bottling Company (Coca-Cola HBC) has announced plans to acquire a 75% majority stake in Coca-Cola Beverages Africa (CCBA) for $2.6 billion, in a move that will create the second-largest Coca-Cola bottling partner globally by volume.
The acquisition, which is expected to be finalized by the end of 2026, will significantly expand Coca-Cola HBC’s presence across the continent, positioning the company as a dominant player in Africa’s fast-growing beverage market.
Under the terms of the deal, Coca-Cola HBC headquartered in Nigeria and operating extensively across Egypt and other parts of Africa, will gain control of operations in 14 additional African markets, including South Africa, Kenya, Ethiopia, and Tanzania. This expansion will see Coca-Cola HBC covering about two-thirds of the total Coca-Cola system volume in Africa and serving over half of the continent’s population, according to a company statement released on Tuesday.
What this means
- The move is part of Coca-Cola HBC’s long-term strategy to strengthen its footprint in emerging markets, where population growth and rising disposable incomes are driving increased demand for consumer beverages.
- Africa represents one of Coca-Cola’s most promising growth frontiers, with an expanding middle class and youthful population contributing to steady growth in non-alcoholic beverage consumption.
To reinforce its commitment to the region, Coca-Cola HBC also announced plans for a secondary listing on the Johannesburg Stock Exchange (JSE) following the completion of the acquisition. The company said this listing would enhance local investor participation and reflect its long-term confidence in South Africa and the broader African market.
“The acquisition of CCBA represents a transformational step for Coca-Cola HBC, combining two strong operations and unlocking significant value through scale, efficiency, and growth opportunities,” the company said.
Coca-Cola Beverages Africa (CCBA), headquartered in Johannesburg, is currently the largest Coca-Cola bottler in Africa and one of the top 10 globally. Established in 2016 through the merger of several regional bottlers, CCBA manages production and distribution across multiple key African economies.
Upon completion of the deal, Coca-Cola HBC will become a critical partner in The Coca-Cola Company’s global bottling network, second only to Coca-Cola Europacific Partners by volume.
What you should know
- In 2021, global beverage giant Coca-Cola announced a $1 billion, five-year investment plan to expand its operations and strengthen its supply chain in Nigeria. The pledge, made under the previous administration, was seen as a major boost to Nigeria’s manufacturing and consumer goods sector.
- However, the company later suspended the investment, citing what it described as a “challenging business environment” and rising excise taxes that disrupted its operational projections.
- The clarification came from Bayo Onanuga, Special Adviser to the President on Information and Strategy, following public concerns about the company’s earlier unfulfilled promise.
- Despite the setback, Onanuga noted that Coca-Cola and its local bottling partner, the Nigeria Bottling Company (NBC), have invested $1.5 billion in Nigeria over the past decade, underscoring the company’s long-term presence in the country.
