According to reports, SABMiller, The Coca-Cola Company and Gutsche Family Investments are combining their soft drinks bottling operations in South and East Africa to create a group with $2.9bn in revenue across 12 fast-growing markets.
Reuters reports that the new company, which will be headquartered in South Africa. It will be 57% owned by the brewer, 31.7% by GFI, which is the majority owner of Coca-Cola Sabco, and 11.3% owned by The Coca-Cola Company.
As part of the deal, Coca-Cola will also acquire SABMiller’s sparkling soft drink Appletiser brands globally, and buy or be licensed for a further 19 non-alcoholic names in Africa and Latin America for about $260m.
“The opportunity is significant, with favourable demographics and economic development pointing to excellent growth prospects,” said SABMiller CE Alan Clark. “This also signifies a strengthening of our strategic relationship with The Coca-Cola Company.”
The new firm, Coca-Cola Beverages Africa, will have more than 30 bottling plants when the deal is completed, bringing together brands such as Appletiser and spring water Valpre in countries such as South Africa, Kenya, Ethiopia, Mozambique and Tanzania.
Others countries are Uganda, Namibia, Comoros and Mayotte. At a later date, operations in Swaziland, Botswana and Zambia will be included in the transaction.
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