ABN - The world’s largest brewer AB InBev has completed the transition of its 54.5% equity stake in Coca-Cola Beverages Africa (CCBA) in a deal worth US$3.15 billion.
The arrangement was confirmed following AB InBev’s acquisition of major competitor SABMiller for $104 billion last year and the pair reached an agreement to transition AB InBev’s majority interest in CCBA to Coca-Cola.
CCBA, the largest Coca Cola bottler in Africa, was formed in 2016 through the African non-alcohol, ready-to-drink bottling arm of SABMiller, the Coca-Cola Company and Gutsche Family Investments.
Accounting for around 40% of all Coca-Cola beverage volumes in Africa with entities across Southern and Eastern Africa.
The interest transition, first announced in December 2016, places the Coca-Cola company as the controlling shareholder of CCBA.
AB InBev commented that CCBA will remain part of the agreements reached with the South African government and the South African competition authorities on a number of conditions.
The Coca-Cola Company restated that it recognizes the value of CCBA operating from South Africa and insisted CCBA will remain incorporated and tax-resident in the country along with its head office.
There are continuing discussions over The Coca-Cola Company acquiring AB InBev’s interest in the bottling operations of its businesses in Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador and Honduras.