The Coca-Cola Company will be buying 54.5% equity stake in Coca-Cola Beverages Africa, CCBA owned by Anheuser-Busch InBev for USD3.15 billion.
In an email statement to PageOne Global Business desk, AB InBev said Coca-Cola Beverages Africa 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 The Coca-Cola Company 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. The Coca-Cola Company plans to hold all of these territories temporarily until they can be refranchised to other partners. The Coca-Cola Company’s intent is to account for the acquired stakes as a discontinued operation for reporting purposes.
Carlos Brito, CEO of AB InBev, said: “We are happy that we have been able to reach this agreement with The Coca-Cola Company in a timely manner and with a satisfactory outcome for all parties.” “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 Company. “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.”
Since it finalised its merger with SAB Miller to become the world’s largest brewer, AB InBev has been shedding some business units and regions from its global exposure. Last week, the company announced that it has sold its Central and Eastern Europe unit to Asahi Group for USD7.5 billion.
The sell has also reached its 24.5% stake in Distell Group holding. The deal does not include Nigeria and major West African countries where AB InBev does not have any stake in Coca-Cola’s units.