Coca-Cola Hellenic Bottling Company (Coca-Cola HBC) is targeting Africa with a $2.6 billion deal.
It will acquire a 75% stake in Coca-Cola Beverages Africa (CCBA) and can buy the rest later.
Moreover, CEO Zoran Bogdanovic described the move as “a long-term path to full ownership in coming years.”
He explained that the deal still needs regulatory approval but expects completion next year.
Coca-Cola Market Growth
As a result, CCBA will become Coca-Cola HBC’s second-largest bottling partner globally by volume.
Because Africa has a youthful population and expanding markets, the company sees huge growth potential.
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Together, they will supply two-thirds of Coca-Cola beverages sold across the continent.
Consequently, they will reach over half of Africa’s population, roughly 450 million consumers.
Investment Strategy
To fund the deal, Coca-Cola HBC will use a €2.5 billion bridge facility and issue shares to the Gutsche Family Investment Company.
CCBA began operations in Nigeria in 1951 and expanded to Egypt in 2022, following its strategy.
In addition, Bogdanovic emphasised, “This acquisition is about growth; investment is the key.”
Furthermore, Coca-Cola HBC plans a secondary listing on the Johannesburg Stock Exchange to boost expansion.
With these steps, Coca-Cola HBC strengthens its foothold in Africa’s rapidly growing market.
