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The South African Competition Commission has recommended approval of Coca-Cola HBC AG’s proposed acquisition of Coca-Cola Beverages Africa (CCBA).

The Commission announced that it has recommended that the Competition Tribunal approve the deal with conditions, concluding that the transaction is unlikely to substantially lessen or prevent competition in any relevant market.

Coca-Cola HBC AG and Coca-Cola HBC Holdings BV intend to acquire CCBA, the largest Coca-Cola bottling operation in Africa. Coca-Cola HBC, headquartered in Switzerland and listed on both the London Stock Exchange and the Athens Exchange, is an authorised bottler of the Coca-Cola Company’s brands across Europe, Eurasia and Africa. Its portfolio spans sparkling soft drinks, water, juice, sports and energy drinks, ready-to-drink tea, coffee and premium spirits.

CCBA operates across the carbonated and non-carbonated soft drinks market in South Africa through authorised bottling subsidiaries producing and distributing Coca-Cola-branded beverages, as well as other licensed brands, including Monster Energy.

Following its assessment, the Commission said the merger would not raise significant competition concerns. However, approval is subject to a series of public interest commitments agreed by the merging parties.

These include a moratorium on merger-related retrenchments in South Africa, commitments to maintain historically disadvantaged persons and worker ownership levels, continued procurement from empowered suppliers, HDPs and small and medium-sized enterprises and investment in downstream distribution, retail operations and capital expenditure within the country.

The parties have also committed to ensuring CCBA remains incorporated and headquartered in South Africa. In addition, Coca-Cola HBC has agreed to pursue a secondary inward listing on the Johannesburg Stock Exchange, subject to obtaining the necessary regulatory approvals.

The Competition Tribunal will make the final decision on whether to approve the transaction.