Coca-Cola, SABMiller Strike New Africa Deal
U.S. Drinks Giant Agrees To Buy South African Brewer’s Appletiser Brand, Merge Bottling Assets
Coca-Cola is buying SABMiller’s Appletiser soft-drink brand and the rights to a further 19 nonalcoholic ready-to-drink brands in Africa and Latin America for around $260 million.
The U.S. drinks group and SABMiller, the world’s number 2 brewer by volumes, are also combining the bottling operations of their nonalcoholic drinks businesses in Southern and East Africa in a new company.
Coca-Cola Beverages Africa, will serve 12 high-growth countries accounting for 40% of all Coca-Cola beverage volumes in Africa, the companies said on Thursday.
On completion of the proposed merger, Coca-Cola will hold 11.3%. of the new company, SABMiller will hold a 57% shareholding, while Gutsche Family Investments, currently the major shareholder in South Africa-based bottler Coca-Cola Sabco, will have a 31.7% stake.
“A combined Coca-Cola bottling operation is further evidence of our commitment to Africa, and our firm belief in the tremendous growth prospects that the continent offers,” said Muhtar Kent , Chairman and CEO of Coca-Cola.
Phil Gutsche will be Chairman of Coca-Cola Beverages Africa and Port Elizabeth, South Africa, is the intended location for the company’s headquarters.
SABMiller will retain ownership of its nonalcoholic malt beverages in Africa and Latin America and will retain its Coca-Cola franchises in El Salvador and Honduras.