Coca-Cola Europacific Partners PLC has successfully concluded an agreement with Aboitiz Equity Ventures Inc to jointly acquire Coca-Cola Beverages Philippines Inc, a soft drinks bottler. Initially disclosed in August, this deal will enable the Uxbridge, England-headquartered bottling powerhouse for Coca-Cola across 29 nations to assume full ownership of CCBPI from Coca-Cola Co in collaboration with the Manila-based conglomerate Aboitiz. In this acquisition, Coca-Cola Europacific Partners will secure a prominent 60% stake in CCBPI, leaving Aboitiz with the remaining 40%.
The agreement’s finalisation is subject to regulatory green lights, expected to conclude in the early months of the upcoming year, as disclosed by Coca-Cola Europacific Partners. Initially announced in August, this agreement entails the purchasers signing a letter of intent to acquire CCBPI from Coca-Cola at a USD1.8 billion enterprise valuation, devoid of debt or cash. The acquisition’s financial arrangement involves a cash payment, which is projected to marginally affect Coca-Cola Europacific Partners’ debt, resulting in a delay of the company’s leverage target from 2023 to 2024.
Coca-Cola Europacific Partners expanded its portfolio through the acquisition of Sydney’s Coca-Cola Amatil in 2021, amplifying its market reach across Australia, New Zealand, Indonesia, Papua New Guinea, and Fiji. This move significantly diversified its geographic influence. Shares of Coca-Cola Europacific Partners experienced a positive surge, reaching EUR55.40 in London on Monday, indicating a 1.3% increase. This promising stock performance highlighted the company’s recent successes and growth trajectory.
The collaborative purchase of Coca-Cola Beverages Philippines Inc denotes a strategic manoeuvre by both entities, aiming to consolidate their position within the highly competitive non-alcoholic beverages market in the Philippines.
