Coca-Cola Beverages Africa

Coca-Cola Beverages Africa (CCBA) is the name of the company that would be formed since 2014 from the merger of SABMiller plc, The Coca-Cola Company and Gutsche Family Investments (GFI) bottling operations in Southern and East Africa.[1]

Overview

On November 27, 2014, SABMiller plc, The Coca-Cola Company and GFI (controlling 80% of Coca-Cola South African Bottling Company -Sabco) announced they had come to terms on a merger.[2] The merger would be executed in two phase. Phase 1 taking 6–9 months while Phase 2 taking 12–18 months after the completion of Phase 1. The merger deal would make Coca-Cola Beverages Africa the largest bottler in Africa and the 10th largest in the world,[3] with annual revenue of USD 3 Billion.[4] Coca-Cola Beverages Africa will serve 12 countries, employing 12,000 people and account for 40 per cent of the total Coca-Cola beverage volume consumed in Africa.[5] The merged business would have its head office in South Africa.[6]

Merger

Merger Parties

SABMiller

SABMiller plc is a multinational brewing and beverage company headquartered in London, England with its primary listing on the London Stock Exchange and a secondary Listing on the Johannesburg Stock Exchange. It is the world's second-largest brewer measured by revenues (after the Belgian-Brazilian Anheuser-Busch InBev) and is also the largest bottler of Coca-Cola in Africa.[7][8]

The Coca-Cola Company

The Coca-Cola Company is a multinational beverage corporation headquartered in Atlanta, Georgia.[9] Its stock is listed on the NYSE. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia.[10]

Coca-Cola Sabco

Coca-Cola Sabco is the second largest Coca-Cola bottler in Africa (after SABMiller) and has been a Coca-Cola bottler since 1940. The firm is 80% owned by Gutsche Family Investments (GFI) and its headquarters are in Port Elizabeth, South Africa. Coca-Cola Sabco grew rapidly through a series of acquisition across Africa. Coca-Cola Sabco has over 8,000 employees and operates in South Africa, Namibia, Mozambique, Kenya, Tanzania, Ethiopia and Uganda.[11]

Merger Details

The Merger of the three parties' operations was through a cashless transaction.[12] The process would be done in two phases:[6]

Phase I

During the first phase the parties will contribute their business interests to Coca-Cola Beverages Africa as follows:

Phase I will give Coca-Cola Beverages Africa access to nine countries i.e. South Africa, Kenya, Ethiopia, Mozambique, Tanzania, Uganda, Namibia, Comoros and Mayotte and is expected to be completed within 6–9 months.

Phase II

SABMiller will contribute to Coca-Cola Beverages Africa its soft drinks bottling businesses of Swaziland Beverages in Swaziland, Sechaba Brewery Holdings Limited and Zambian Breweries Plc that are listed subsidiaries on the Botswana and Zambia Stock Exchange respectively.

Phase II is expected to be completed within 18 months after the completion of Phase I due to the regulatory and shareholder approvals. At the conclusion of Phase II, Coca-Cola Beverages Africa will have presence in South Africa, Kenya, Ethiopia, Mozambique, Tanzania, Uganda, Namibia, Comoros, Mayotte, Swaziland, Botswana and Zambia.

Addition Deal

In addition to the deal, The Coca-Cola Company agreed to acquire sparkling soft drink Appletiser brands globally, and buy or be licensed for a further 19 non-alcoholic names in Africa and Latin America from SABMiller for about $260 million.[12][13]

Shareholding after Merger

Upon conclusion of the merger, shareholding in the stock of Coca-Cola Beverages Africa's as follows:[6][12]

Coca-Cola Beverages Africa Stock Ownership
Rank Name of OwnerPercentage Ownership
1 SABMiller 57.0
2 Gutsche Family Investments 31.7
3 The Coca-Cola Company 11.3
Total100.00

Progress

As at July 31, 2015, the merger transaction was yet to be concluded. It had however received regulatory approval from the COMESA Competition commission.[14]

See also

References

  1. ↑ "Coca-Cola Company, SABMiller and Gutsche Family Investments to combine the bottling operations". http://www.cnbcafrica.com/. ABN Digital. 2014-11-27. Retrieved 2014-12-09. External link in |website= (help)
  2. ↑ "The Coca-Cola Company, SABMiller And Coca-Cola SABCO To Form Coca-Cola Beverages Africa". http://www.coca-colacompany.com/. The Coca-Cola Company. November 27, 2014. Retrieved December 19, 2014. External link in |website= (help)
  3. ↑ Matinson, Alec (2014-11-27). "Coca-Cola and SABMiller combine African soft drinks bottling operations". http://www.thegrocer.co.uk/. The Grocer. Retrieved 2014-12-09. External link in |website= (help)
  4. ↑ "SABMiller, Coca-Cola Form Joint Bottling Venture in Africa". http://www.bloomberg.com/. Bloomberg LLP. November 27, 2014. Retrieved December 9, 2014. External link in |website= (help)
  5. ↑ Thomas, Nathalie (2014-11-27). "SABMiller agrees $3bn Coca-Cola bottling deal". http://www.telegraph.co.uk/. The Telegraph. Retrieved 2014-12-09. External link in |website= (help)
  6. 1 2 3 "Press Releases - The Coca-Cola Company, SABMiller plc and Coca-Cola Sabco to form Coca-Cola Beverages Africa" (PDF). SABMiller. 27 November 2014. Retrieved 4 December 2014.
  7. ↑ "Company Snapshot 2010" (PDF). SABMiller plc. Archived from the original (PDF) on 17 May 2011. Retrieved 30 August 2010.
  8. ↑ "SABMiller, Asahi eye Foster's beer unit: sources". Reuters. 23 August 2010. Retrieved 30 August 2010.
  9. ↑ "The Coca-Cola Brands". coca-colacompany.com. Retrieved 2012-12-19.
  10. ↑ "Who Invented Coca Cola?". Whoinventedit.net. Retrieved 2012-11-02.
  11. ↑ "Coca-Cola Sabco – What a Journey!". Coca-Cola Sabco. Retrieved 2014-12-09.
  12. 1 2 3 "UPDATE 2-SABMiller, Coke team up to bottle Africa's fizzy drinks". http://www.reuters.com/. Reuters. 2014-11-27. Retrieved 2014-12-09. External link in |website= (help)
  13. ↑ Hedley, Nick (2014-11-28). "SABMiller forges closer Coca-Cola ties". http://www.bdlive.co.za/. Retrieved 2014-12-09. External link in |website= (help)
  14. ↑ "Case File No. CCC/MER/03/03/2015" (PDF). COMESA Competition Commission. COMESA. 2015-07-29. Retrieved 2015-08-11. External link in |website= (help)

External links

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