Swiss-based Coca-Cola HBC buys controlling stake in its African counterpart for $2.6 billion
In a landmark transaction set to reshape Africa’s beverage landscape, Coca-Cola HBC AG has agreed to acquire a controlling 75% stake in Coca-Cola Beverages Africa Pty. Ltd. (CCBA) from The Coca-Cola Company and Gutsche Family Investments. The $2.6 billion deal will create one of the largest Coca-Cola bottling operations in the world.
The purchase will make the Swiss-based company the second-largest bottling partner for Coca-Cola by volume, a dominant player across the continent. The deal adds 14 African markets to its portfolio, expanding its reach to cover more than half of Africa’s population.
Shares of Coca-Cola HBC fell as much as 4.7% in London after the company announced it would cancel a share buyback to help finance the acquisition. Despite the short-term market reaction, the company’s Chief Financial Officer, Anastasis Stamoulis, called the move a strong signal for the continent, saying, “It’s a vote of confidence in South Africa and the African continent.”
The transaction also aligns with the long-term strategy to move away from the capital-intensive bottling business. The Atlanta-based beverage giant has been divesting such operations globally, including in India, to focus on brand ownership and concentrate production.
Following the sale, Coca-Cola’s bottling investments will fall to about 5% of total revenue, down from 13% last year and 52% nearly a decade ago.
As part of the agreement, the Gutsche family will receive both cash and shares, resulting in a 5.5% stake in Coca-Cola HBC. The deal also includes an option for HBC to acquire the remaining CCBA stake within six years.
