In a major boost for Africa’s fast-growing consumer market, Coca-Cola Hellenic Bottling Company (Coca-Cola HBC) has announced plans to acquire a 75% stake in Coca-Cola Beverages Africa (CCBA) for $2.6 billion, marking one of the largest corporate transactions in Africa’s consumer goods sector.
According to Reuters, Coca-Cola HBC will acquire U.S.-based Coca-Cola’s (KO.N) roughly 42% stake in Coca-Cola Beverages Africa (CCBA) and the Gutsche Family Investments’ entire stake, valuing the African bottler at $3.4 billion, according to company statements.The deal will see Coca-Cola HBC which is already a key bottler in several African markets take control of operations spanning over 14 countries across the continent. Once completed, the transaction will make Coca-Cola HBC the second-largest Coca-Cola bottler globally by volume, after Mexico-based FEMSA, and the largest across Africa.
Coca-Cola HBC will represent two-thirds of Africa’s total Coca-Cola volume, including drinks such as Fanta, Sprite and Monster, and cover more than 50% of the continent’s population, according to J.P. Morgan.Coca-Cola HBC Chief Executive Officer Zoran Bogdanovic described the acquisition as a long-term investment in Africa’s economic future.The deal for control of CCBA, founded in 2014, will be one of the biggest ever in Africa’s consumer goods space, according to Rothschild, the sole adviser to Coca-Cola.
“This acquisition is about growth. Africa is one of the most dynamic consumer markets in the world young, urbanising, and full of entrepreneurial energy. We are investing to serve that future,” he said.
The company also announced plans for a secondary listing on the Johannesburg Stock Exchange (JSE), reinforcing its commitment to Africa’s financial markets. It retains the option to purchase the remaining 25% stake in CCBA from The Coca-Cola Company within six years.
Strengthening Africa’s Consumer Sector
Analysts say the transaction highlights global confidence in Africa’s rising middle class and growing demand for fast-moving consumer goods. The beverage sector, in particular, has shown resilience despite inflationary pressures and shifting trade conditions.
Investment bank Rothschild, the sole adviser to Coca-Cola, called the acquisition one of the most significant in Africa’s consumer goods landscape. Goldman Sachs and UBS advised Coca-Cola HBC, while Nomura represented Gutsche Family Investments (GFI), which sold its entire stake.
Offsetting Global Pressures
The expansion into Africa comes as Coca-Cola HBC looks to rebalance its global portfolio following its 2022 exit from Russia, which was among its most profitable markets. Emerging markets particularly in Africa, Eastern Europe, and the Balkans already account for the majority of the group’s volumes.
Despite global economic pressures and cost headwinds, Coca-Cola HBC reaffirmed its annual sales outlook this week. Its London-listed shares briefly dipped on Tuesday before recovering most of their losses.
