Coca-Cola HBC has agreed to acquire a majority stake in Coca-Cola Bottling Company of Egypt (CCBCE) for $427 million.
According to the announcement – which came after the Swiss-based bottler reported a steep rise in half-year profits – the company’s Coca-Cola HBC Holdings subsidiary will buy around 94.7% of CCBCE from its major shareholders, including The Coca-Cola Company and Mac Beverages, along with certain other affiliates.
Coca-Cola HBC says that the deal will provide it with access to the second largest non-alcoholic ready-to-drink market in Africa by volume and expand its exposure to high-growth geographies.
Abdul Galil Besher, chairman of Mac Beverages and CCBCE, said: “We are very pleased to pass on to Coca-Cola HBC the ownership torch of CCBCE”.
“As a leading anchor bottler of the Coca-Cola system, we believe that Coca-Cola HBC will accelerate CCBCE’s growth ambitions, by combining its expertise, breadth of knowledge, know-how and critical mass, with the company’s deep market knowledge developed over our multi-decade presence in Egypt.”
Brian Smith, president and chief operating officer of The Coca-Cola Company, added: “This transaction promises to strengthen our system in Egypt, where the expertise of Coca-Cola HBC will be a complement to the local knowledge and capabilities of CCBCE”.
“This agreement represents an important development in the Coca-Cola system’s long-term commitment to the growth and development of this important market.”
© FoodBev Media Ltd 2021
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