Coca-Cola reaches agreement with S. Africa on acquisition of local unit

CocaCola

Drinks giant Coca-Cola (KO.N) said it had reached an agreement with the South African government on a package of conditions as it finalizes the purchase of a controlling 54.5 percent stake in its joint Africa venture with ABInBev (ABI.BR).

New York-listed Coca-Cola said in a statement it would abide by merger conditions agreed with competition authorities in 2016 including a pledge to raise black ownership in Coca-Cola Beverages South Africa to 30 percent by 2021, Reuters report.

“We are pleased to have reached this agreement with the South African government which demonstrates our alignment with the government’s national imperatives for inclusive social and economic development,” said Chief Executive James Quincey.

Last December, the drinks giant reached a deal to buy Anheuser-Busch InBev’s majority stake in their African bottling venture for USD3.15 billion and hold onto it until it finds a new owner.

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