Coca-Cola eyes African bottler to keep out of AB Inbev’s takeover sights
Company plans to exercise a change-of-control clause to buy SABMiller’s stake in Coca-Cola Beverages Africa
Within hours of Anheuser Busch InBev (AB InBev) formally completing its takeover of SABMiller, the Coca-Cola company said it planned to exercise a change-of-control clause to buy SABMiller’s 57% share in Coca-Cola Beverages Africa (CCBA). Trevor Stirling of the London-based Bernstein Research said the move was not unexpected. "AB InBev is a Pepsi anchor bottler in Latin America." Plus, added Stirling, Coca-Cola must know it is now in AB InBev’s takeover sights. Stirling believes Coca-Cola will want to complete the purchase as speedily as possible in the hope of preventing AB Inbev from getting too close a look at the workings of Coca-Cola. Coca-Cola owns 11.3% of CCBA, which accounts for about 40% of Coca-Cola’s African soft-drink sales. The Gutsche Family Investments, a private entity, holds the remaining 31.7%. CCBA owns Coca-Cola bottling operations in 12 high-growth markets across southern and East Africa, and has annual revenues of about $2.9bn. It is the largest Coca-Cola bott...
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