World’s largest brewer, Anheuser-Busch InBev has sold its 54.5% equity stake in Coca Cola Beverages Africa, the biggest bottler of Coca Cola products in Africa, to Coca Cola at a price of $3.15 billion.
Report has it that, the deal will see operations of Coca Cola Beverages Africa in countries such as Comoros, Mayotte, Ghana, Mozambique, Ethiopia, Tanzania, Uganda, Kenya, Namibia and South Africa sold to the Atlanta, Georgia-based beverages giant, noting that these operations represent about 40% of the combined beverage volumes of Coca Cola on the African continent.
Transactions to finalize a deal aimed at selling the AB InBev stake in bottling businesses that are located in Honduras, El Salvador, Lesotho, Swaziland, Botswana, Zambia and Zimbabwe to Coca Cola is yet to be approved by shareholders and regulators.
Coca Cola Beverages Africa bottler was formed after the SABMiller’s ready-to-drink non-alcohol interests were merged with those of Gutsche Family Investments and Coca Cola Company. In 2016 SABMiller was acquired by AB InBev at a price of $104 billion.
With the deal having been concluded Coca Cola’s expansion in Africa will be greatly enhanced, giving Coca Cola a controlling stake once acquisition is completed. Until a suitable refranchising partner is found, Coca Cola Beverages Africa has indicated that businesses will temporarily remain as they are.
However, an agreement that involves committing the organization to remain a tax resident in Africa’s biggest economy and to remain incorporated there has been reached between Coca Cola Beverages Africa and South Africa’s government.