AB InBev announced on Thursday that the transition of its 54.5% equity stake in Coca-Cola Beverages Africa (CCBA) for$ 3.15 billion after customary adjustments has now been completed. Buyer is The Coca-Cola Company. The transaction follows a change of control clause in CCBA which Coca Cola obtained when it formed the company with SABMiller and the South African owners of bottler Coca-Cola Sabco in 2016.
First informations about the transaction were already made public in October 2016 (inside.beer.12.10.2016) and the deal was officially announced in December of the same year (inside.beer, 21.12.2016).
CCBA is the tenth largest Coca-Cola bottling partner worldwide and the biggest on the African continent. The company was formed in 2016 through the combination of the African non-alcohol ready-to-drink bottling interests of SABMiller, The Coca-Cola Company and Gutsche Family Investments.
The company operates today more than 30 bottling plants serving over 450,000 outlets across the African continent. It employs more than 14,000 people and enjoys the number one market position in all 12 territories in sub-Saharan Africa, which include South Africa, Kenya, Ethiopia, Mozambique, Tanzania, Uganda, Namibia, Mayotte, Comoros, Swaziland, Botswana and Zambia. The latter three countries will be integrated into CCBA’s operations over the next 12 to 18 months.
Following completion, CCBA will remain subject to the agreement reached with the South African Government and the South African Competition Authorities on several conditions, all of which were previously announced.
In addition the companies continue to work towards finalizing the terms and conditions of the agreement for The Coca-Cola Company to acquire AB InBev’s interest in, or the bottling operations of, its businesses in Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador, and Honduras. These transactions are subject to the relevant regulatory and shareholder approvals in the different jurisdictions.