The world's largest brewer, Anheuser-Busch InBev (AB InBev) on Thursday announced that it has completed the transition of its 54.5% equity stake in Coca-Cola Beverages Africa (CCBA) for U.S.$3.15 billion after customary adjustments.
This comes after AB InBev last year acquired SABMiller for U.S.$104 billion and reached an agreement to transition AB InBev’s 54.5 percent equity stake in CCBA to Coca-Cola.
CCBA, the largest Coca-Cola bottler in Africa, was formed in 2016 through the combination of the African non-alcohol ready-to-drink bottling interests of SABMiller plc, The Coca-Cola Company and Gutsche Family Investments.
It includes entities in South Africa, Namibia, Kenya, Uganda, Tanzania, Ethiopia, Mozambique, Ghana, Mayotte, and Comoros, which account for about 40 percent of all Coca-Cola beverage volumes in Africa.
The transition, which was first announced in December 2016, makes The Coca-Cola Company the controlling shareholder of CCBA.
The Coca-Cola Company plans to hold all of these territories temporarily until they can be refranchised to other partners, also with the intent to account for the acquired stakes as a discontinued operation for reporting purposes.
Following completion, AB InBev said CCBA will remain subject to the agreement reached with the South African government and the South African competition authorities on several conditions.
The Coca-Cola Company said it recognises 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 South Africa.
In addition, the companies would continue to work towards finalizing the terms and conditions of the agreement for The Coca-Cola Company to acquire AB InBev's interest in, or the bottling operations of, its businesses in Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador, and Honduras. The amount for this transaction is yet to be announced.
These transactions are subject to the relevant regulatory and shareholder approvals in the different jurisdictions.