Coca-Cola HBC to buy controlling stake in Africa bottler CCBA in $3.4bn deal

Investing.com -- Coca-Cola HBC has agreed to acquire a controlling interest in Coca-Cola Beverages Africa (CCBA) from The Coca-Cola Company and Gutsche Family Investments in a $3.4 billion transaction, a move that will make it the world’s second-largest Coca-Cola bottling partner by volume.

Under the agreement, Coca-Cola will sell around 42% of its stake in CCBA to Coca-Cola HBC, while the bottler will purchase the entire 33.48% share owned by Gutsche Family Investments. The combined purchase price for both stakes is $2.6 billion, valuing CCBA at an equity value of $3.4 billion.

Shares in Coca-Cola HBC edged 0.5% lower in early London trading. 

Coca-Cola HBC, which produces and distributes brands including Fanta, Sprite, and Monster, plans to pursue a secondary listing on the Johannesburg Stock Exchange as part of the transaction. CCBA, which operates in 14 African markets, accounts for roughly 40% of Coca-Cola product volumes sold across the continent.

The companies expect the deal to close by the end of 2026. Coca-Cola HBC will also have an option to buy Coca-Cola’s remaining 25% stake within six years of completion.

“This milestone marks a historic moment for Coca-Cola HBC and continues our legacy of growth and partnership across Africa,” said Anastassis David, Chairman of the Board of Coca-Cola HBC.

“For decades, we have invested to unlock Africa’s extraordinary potential. We look forward to accelerating this positive momentum with CCBA to deliver lasting value for our stakeholders, and make a positive impact in the communities we serve.”

After completion, Coca-Cola HBC will account for about two-thirds of the Coca-Cola system’s total volume in Africa and reach more than half of the continent’s population.

The combined group’s pro forma 2024 figures include 4.0 billion unit cases, €14.1 billion in revenue, and €1.4 billion in EBIT, the company said in the release.