CocaCola HBC acquires African rival in major three billion pound deal

Coca-Cola HBC has unveiled plans to acquire a 75 per cent controlling stake in Coca-Cola Beverages Africa (CCBA), marking a transformative move in the global soft drinks sector. The deal, valued at 2.6 billion US dollars or approximately 2.1 billion pounds, assigns CCBA an enterprise valuation of 3.4 billion dollars and will see the London-listed Coca-Cola HBC expand its reach to cover over half the African continent’s population.

The purchase will be settled through a combination of 1.6 billion dollars in cash—financed by a bridging facility—and a stake in Coca-Cola HBC itself estimated at about 1 billion dollars. Gutsche Family Investments, which holds a 33.5 per cent stake in CCBA, will be paid in a mixture of cash and HBC shares, transitioning them into the third-largest shareholder in the newly enlarged bottler with a 5.74 per cent stake. The remainder, a 41.5 per cent holding owned by the Atlanta-based Coca-Cola Company, will be acquired for cash.

Coca-Cola HBC has already established a significant African presence, tracing its origins to Nigeria nearly 75 years ago and acquiring the group’s Egyptian bottling operation in 2022. CCBA operates in 14 African markets, with the majority of its addressable population under the age of 30, presenting significant long-term growth opportunities as regional beverage consumption increases.

The takeover will position Coca-Cola HBC as the world’s second-largest Coca-Cola bottler by volume and prompt a secondary listing on the Johannesburg Stock Exchange to cement its commitment to African markets. Shares in Coca-Cola HBC closed down 0.9 per cent at £35.06 as the market weighed the merits of this strategic investment and the company’s decision to halt its share buyback programme pending completion of the deal.

A spokesperson for the bottler’s largest investors, the Leventis family and the Coca-Cola Company, highlighted the scale of the opportunity for value creation and growth in Africa. The transaction represents a significant shift in the global bottling landscape, with Coca-Cola HBC optimising its balance sheet to secure long-term prosperity in one of the world’s fastest-growing regions.

The transaction is expected to complete by the end of 2026, with Coca-Cola HBC retaining an option to purchase the remaining minority interest from the Coca-Cola Company in due course.