Photo by: Reuters
Beverages giant The Coca-Cola Company and triple-listed brewery Anheuser-Busch InBev (AB InBev) have reached an agreement regarding the transition of AB InBev’s 54.5% equity stake in Coca-Cola Beverages Africa (CCBA) for $3.15-billion.
CCBA includes 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 these territories temporarily until they can be refranchised to other partners.
AB InBev CEO Carlos Brito noted the company was pleased to have reached the agreement in a timely manner.
The Coca-Cola Company CEO Muhtar Kent added that the company would now move forward with its 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”.