South Africa’s Competition Tribunal has conditionally approved Coca-Cola HBC’s move to buy majority control of Coca-Cola Beverages Africa.
In a statement, the Tribunal said it had cleared the transaction – announced last October – but “subject to conditions aimed at addressing various public interest considerations”.
The Tribunal said it had heard submissions from the companies and a trade union representing CCBA staff.
Asked for further detail on the conditions, a spokesperson for the Tribunal said: “The Tribunal Panel is in the process of finalising the merger parties’ confidentiality claims and a copy of the Tribunal order and conditions will be made available on the Tribunal’s website as soon as the process has been finalised.”
Just Drinks has approached Coca-Cola HBC for comment.
Coca-Cola HBC struck a deal to buy a combined 75% of Coca-Cola Beverages Africa (CCBA) from The Coca-Cola Company and Gutsche Family Investments for $2.6bn.
UK-listed Coca-Cola HBC has operations in Egypt and Nigeria and the deal will see the company enter 14 more markets in Africa, including Ethiopia, Kenya and South Africa.
Combined, the companies would have generated pro-forma revenues of €14.1bn ($16.39bn) and EBIT of €1.4bn in 2024, Coca-Cola HBC said when the deal was announced. The businesses together would account for two-thirds of the volumes put through the Coca-Cola system in Africa.
The remaining 25% of CCBA is subject to an option agreement between Coca-Cola HBC and The Coca-Cola Company.
“Tribunal conditionally clears Coca-Cola bottling deal” was originally created and published by Just Drinks, a GlobalData owned brand.