Closing of Previously Announced Transition of AB InBev’s 54.5% Equity
Stake to The Coca-Cola Company Follows Regulatory Approvals; The
Coca-Cola Company Will Continue to Work Toward Refranchising CCBA, The
Largest Coca-Cola Bottler in Africa
ATLANTA & BRUSSELS--(BUSINESS WIRE)--Oct. 4, 2017--
The Coca-Cola Company (NYSE: KO) and Anheuser-Busch InBev (AB InBev)
(Euronext: ABI) (NYSE: BUD) (MEXBOL: ANB) (JSE: ANH) announced today
that they have completed the transition of AB InBev’s majority interest
in Coca-Cola Beverages Africa (CCBA).
CCBA, the largest Coca-Cola bottler in Africa, was formed in 2016
through the combination of African non-alcoholic ready-to-drink bottling
interests of SABMiller plc, The Coca-Cola Company and Gutsche Family
Investments. AB InBev later acquired SABMiller and reached an agreement
to transition AB InBev’s 54.5% equity stake in CCBA to Coca-Cola.
The transition, which was first announced in December 2016, makes The
Coca-Cola Company the controlling shareowner of CCBA. The closing
follows the completion of a number of regulatory approvals across the
territories in which CCBA operates.
The Coca-Cola Company plans to hold its controlling interest in CCBA
temporarily until it is refranchised. The Coca-Cola Company will account
for CCBA as a discontinued operation.
Today’s announcement reflects agreements reached with the South African
Government and the South African competition authorities on several
conditions, all of which were previously announced. The Coca-Cola
Company recognizes the value of driving CCBA’s operations from South
Africa and recommitted that CCBA will remain incorporated and
tax-resident in South Africa, and its head office will also remain in
The companies continue to work toward finalizing their conditional
agreement in principle for The Coca-Cola Company to acquire AB InBev’s
interest in bottling operations in Zambia, Zimbabwe, Botswana,
Swaziland, Lesotho, El Salvador and Honduras.
As previously announced, The Coca-Cola Company’s process to refranchise
CCBA is open to South African and international prospective partners who
have the necessary skill, capacity and commitment to drive The Coca-Cola
Company’s vision for CCBA. They will be required to abide by the
commitments made by The Coca-Cola Company to the government of the
Republic of South Africa. Partner selection will take into consideration
a number of factors, as previously announced, including a commitment to
maintain South Africa as an anchor geography for the bottler in driving
the development of CCBA on the continent and have a positive impact in
South Africa and the rest of the continent.
The Coca-Cola Company has been engaging with both South African and
international parties interested in acquiring an interest in CCBA.
About The Coca-Cola Company
The Coca-Cola Company (NYSE: KO) is the world’s largest total beverage
company, offering over 500 brands to people in more than 200 countries.
Of our 21 billion-dollar brands, 19 are available in lower- and no-sugar
options to help people everywhere more easily control added sugar. In
addition to our namesake Coca-Cola drinks, some of our household names
around the world include: AdeS soy-based beverages, Ayataka green tea,
Dasani waters, Del Valle juices and nectars, Fanta, Georgia coffee, Gold
Peak teas and coffees, Honest Tea, Minute Maid juices, Powerade sports
drinks, Simply juices, smartwater, Sprite, vitaminwater, and Zico
coconut water. At Coca-Cola, we’re serious about making positive
contributions to our world. That starts with reducing sugar in our
drinks and bringing new and different drinks to people everywhere. It
also means continuously working to reduce our environmental impact,
creating rewarding careers for our associates, and bringing economic
opportunity wherever we operate. In fact, together with our bottling
partners, we employ more than 700,000 people around the world. For more
information, visit our digital magazine Coca-Cola Journey at www.coca-colacompany.com
and follow The Coca-Cola Company on Twitter,
This press release does not constitute or form a part of any offer or an
invitation or solicitation or advertisement to purchase and/or subscribe
for securities in South Africa, including an offer to the public for the
sale of, or subscription for, or an invitation or the solicitation of an
offer to buy and/or subscribe for, securities as defined in the South
African Companies Act, 71 of 2008 (as amended).
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Source: The Coca-Cola Company
The Coca-Cola Company
Leveridge, +1 404-676-7563
Scott Leith, +1 404-676-8768