Coca Cola Spends $3.5b Buying Africa’s Largest Coke Bottler
In one of the largest deals in Africa this year, Coca Cola has bought a majority stake in Coca-Cola Beverages Africa (CCBA) for $3.5 billion (over N1.4 trillion).
According to Reuters, worlds largest brewer Anheuser-Busch InBev agreed to sell its majority stake in Africa’s largest Coke bottler to the Coca Cola Company for $3.15 billion, the final planned divestment following its purchase of rival brewer SABMiller (majority shareholder in Nigeria’s International Breweries).
The deal will see AB InBev transfer 54.5% of its stake in CCBA to Coca Cola. The companies have also 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. CCBA has operations in South Africa, Namibia, Kenya, Uganda, Tanzania, Ethiopia, Mozambique, Ghana, Mayotte and Comoros.
CCBA is the equivalent of Nigerian Bottling Company (which went private some years back) and is currently not mentioned as a target in this deal.