Coca-Cola to buy out AB InBev’s stake in African bottling outfit

Coca-Cola has reached an agreement to buy out Anheuser-Busch’s 54.5% stake in Coca-Cola Beverages Africa (CCBA) for $3.15 billion.

CCBA’s bottling territory covers much of the southern and eastern part of the African continent – including South Africa, Namibia, Kenya, Uganda, Tanzania, Ethiopia, Mozambique, Ghana, Mayotte and Comoros.

The territories affected by the deal.

The two companies have also reached an agreement in principle for Coca-Cola to acquire Anheuser-Busch’s interest in bottling operations in five more African countries – Zambia, Zimbabwe, Botswana, Swaziland and Lesotho – as well as El Salvador and Honduras.

But Coca-Cola will only hold the acquired territory temporarily until they can be refranchised to other bottling partners.

Anheuser-Busch CEO Carlos Brito said: “We are happy that we have been able to reach this agreement with The Coca-Cola Company in a timely manner and with a satisfactory outcome for all parties.”

And Muhtar Kent, chairman and CEO of The Coca-Cola Company, added that the agreements were in ‘everyone’s best interests’.

“We will move forward with our long-term strategic plan in these important growth markets,” he said. “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.”

The transactions are subject to the relevant regulatory and minority approvals and are expected to close by the end of 2017.