Coca-Cola HBC AG has agreed to acquire a 75% stake in Coca-Cola Beverages Africa for $2.6 billion, a move that will create the second-largest Coca-Cola bottler in the world by volume.
The company is buying the stake from The Coca-Cola Company and Gutsche Family Investments, implying a total equity value for the African bottler of $3.4 billion, according to a company statement on Tuesday.
The acquisition materially expands Coca-Cola HBC's footprint on the continent, adding 14 markets, including South Africa, Kenya and Ethiopia, to its existing operations in Nigeria and Egypt.
Following the deal, the combined company will cover over 50% of Africa's population, the company said.
"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 Zoran Bogdanovic, Chief Executive Officer of Coca-Cola HBC.
"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.
The company also plans to pursue a secondary listing on the Johannesburg Stock Exchange and has an option to acquire the remaining 25% of Coca-Cola Beverages Africa at a later date.
The transaction is targeted to close by the end of 2026, subject to regulatory and shareholder approvals.
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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.