The Coca-Cola Company today announced plans to acquire Anheuser-Busch InBev’s (ABI) stake in Coca-Cola Beverages Africa (CCBA) following the closing of the ABI combination with SABMiller.
This announcement comes after the one relating the proposed merger between Coca-Cola East Japan Co. Ltd. (CCEJ) and Coca-Cola West Co. Ltd. (CCW). The operation, expected to close in April 2017, will result in Coca-Cola Bottlers Japan Inc., the world’s third largest Coca-Cola bottler by revenue.
The merger between the mentioned Japanese botlers marks a major milestone in the evolution of this highly competitive 110 million consumers market , that once had as many as 17 local bottling companies.
ABI’s partnership termination
During the next few months Coca-Cola will negotiate the terms of the transaction with ABI, according to the contractual parameters. The purchase agreement, once signed, will later be followed by the regulatory approval process.
The company has chosen to exercise its right to acquire ABI’s stake in CCBA, as it has decided to carry out Coca-Cola’s long-term strategic plan in this region with other partners.
“While the company respects ABI’s capabilities, it has a number of existing partners who are highly qualified and interested in these bottling territories”, points The Coca Cola Company.
Coca-Cola will continue negotiations with potential partners, and plans to refranchise CCBA as soon as the regulatory approval of the purchase is obtained.
Image over the headline.- Coca-Cola Bottle. © The Coca-Cola Company
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