Coca-Cola HBC to buy African bottler in $2.6 billion deal, creating global giant

Coca-Cola HBC AG has agreed to acquire a 75% stake in Coca-Cola Beverages Africa for $2.6 billion, a deal that will create the world's second-largest Coca-Cola bottler by volume.

The company said on Tuesday it is buying the stake from The Coca-Cola Company and Gutsche Family Investments, giving the African bottler a total equity value of $3.4 billion.

The acquisition significantly expands Coca-Cola HBC's presence on the continent, adding 14 markets, including South Africa and Kenya, to its existing operations in Nigeria and Egypt.

"Having established our business in Nigeria nearly 75 years ago and with our successful acquisition and integration of the Egypt business three years ago, we have a deep understanding of the compelling proposition Africa presents," said Chief Executive Officer Zoran Bogdanovic.

"It has a sizable and growing consumer base, and there are significant opportunities to increase per capita consumption."

Coca-Cola HBC said the deal is expected to add to its earnings per share from the first full year after completion, which is targeted for the end of 2026.

The announcement came as the company reported a 5.0% rise in third-quarter organic revenue and reiterated its full-year financial guidance.

The agreement includes an option for Coca-Cola HBC to acquire the remaining 25% of Coca-Cola Beverages Africa at a later date, and the company also plans to pursue a secondary listing on the Johannesburg Stock Exchange.