Coca-Cola has announced that it will exercise its right to acquire Anheuser-Busch’s stake in Coca-Cola Beverages Africa (CCBA).
Coca-Cola said that it intends to implement its long-term strategic plan in CCBA’s markets with a number of its existing partners, who it said ‘are highly qualified and interested’ in these bottling territories.
During the next few months the company will negotiate the terms of the transaction with Anheuser-Busch according to the contractual parameters, which will later be followed by a regulatory approval process. The Coca‑Cola Company will also continue negotiations with potential partners, and plans to refranchise CCBA as soon as practical following regulatory approval.
The company’s intent is to account for the acquired stake as a discontinued operation for reporting purposes.
It follows the completion of the $100 billion merger between Anheuser-Busch and SABMiller, which we announced last month was set to be completed.
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