{"id":9890,"date":"2025-10-22T04:04:13","date_gmt":"2025-10-22T08:04:13","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=9890"},"modified":"2025-10-22T04:04:13","modified_gmt":"2025-10-22T08:04:13","slug":"coca-cola-hbc-agrees-to-acquire-coca-cola-beverages-africa","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=9890","title":{"rendered":"Coca-Cola HBC agrees to acquire Coca-Cola Beverages Africa"},"content":{"rendered":"


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Coca-Cola HBC plans a secondary listing on the Johannesburg Stock Exchange to reflect its strengthened African footprint. \/ Credit: T. Schneider via Shutterstock<\/figcaption><\/figure>\n<\/p><\/div>\n

Coca-Cola HBC has agreed to acquire a 75% shareholding in Coca-Cola Beverages Africa (CCBA) for US$2.6bn, valuing the African bottler at US$3.4bn.<\/p>\n

The transaction would create the world\u2019s second-largest Coca-Cola bottling partner by volume and materially expand Coca-Cola HBC\u2019s footprint across high-growth African beverage markets.<\/p>\n

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The company targets completion by the end of 2026, subject to approvals. As part of the Coca-Cola HBC acquisition, Gutsche Family Investments (GFI) will receive new Coca-Cola HBC shares equal to 5.47% of the enlarged share capital, and a bridge facility will fund the cash element.<\/p>\n

An option agreement gives Coca-Cola HBC the right to buy, or The Coca-Cola Company (TCCC) the right to sell, the remaining 25% of CCBA after completion.<\/p>\n

Scale and market reach across Africa and Europe<\/h2>\n

CCBA operates in 14 African markets and accounts for about 40% of Coca-Cola system volumes on the continent.<\/p>\n

Following completion, Coca-Cola HBC estimates it would represent roughly two-thirds of Africa\u2019s Coca-Cola system volume and cover more than half of the continent\u2019s population.<\/p>\n

On a pro forma basis for 2024, the combined group would have produced 4.0bn unit cases, with revenues of \u20ac14.1bn and EBIT of \u20ac1.4bn.<\/p>\n

The enlarged bottler would have leading positions across Africa and Europe, reinforcing its stated ambition to be a \u201c24\/7 beverage partner\u201d in non-alcoholic ready-to-drink (NARTD) categories.<\/p>\n

Strategic rationale and growth outlook<\/h2>\n

Management highlights demographic and macroeconomic drivers behind the CCBA deal, including fast-growing populations and a large under-30 consumer base in CCBA\u2019s territories.<\/p>\n

Coca-Cola HBC expects the combination to increase diversification, deepen exposure to emerging markets and support per-capita consumption growth.<\/p>\n

The company plans to apply its operating model, route-to-market capabilities and sustainability initiatives alongside CCBA\u2019s existing portfolio of more than 40 global and local brands.<\/p>\n

The acquisition is positioned as a natural extension of Coca-Cola HBC\u2019s long-standing presence in Nigeria and its 2022 entry into Egypt, creating a broader platform to share best practices across African markets.<\/p>\n

Financial impact, funding and shareholder measures<\/h2>\n

Coca-Cola HBC guides to low single-digit earnings per share accretion in the first full year after completion.<\/p>\n

Leverage is expected toward the upper end of the medium-term target range of 1.5x\u20132.0x net debt to EBITDA, with no anticipated effect on the company\u2019s investment-grade credit profile.<\/p>\n

To prioritise the transaction, the existing share buyback programme has been cancelled with immediate effect.<\/p>\n

Funding will include a new bridge financing facility, alongside the share consideration issued to GFI. The option agreement with TCCC provides a pathway to full ownership of CCBA over time, subject to future decisions and regulatory clearances.<\/p>\n

Listing plans and regulatory timeline<\/h2>\n

To reflect its enlarged African presence and \u201cCoca-Cola Beverages Africa\u201d brand relevance, Coca-Cola HBC intends to pursue a secondary listing on the Johannesburg Stock Exchange, signalling a long-term commitment to South Africa and the wider region.<\/p>\n

The company targets closing by the end of 2026, pending regulatory and competition approvals in the relevant jurisdictions and customary closing conditions.<\/p>\n

Until completion, both companies will operate independently.<\/p>\n

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