Coca-Cola HBC Acquires Control of African Bottler in $2.6B Deal to Accelerate Growth

Zurich/London -

Coca-Cola HBC Acquires 75% of African Bottler in $2.6 Billion Deal to Accelerate Growth

Coca-Cola HBC has made a major strategic move in its global expansion by acquiring a 75% stake in Coca-Cola Beverages Africa (CCBA) for $2.6 billion. The deal sees the Swiss-based bottler purchasing The Coca-Cola Company’s 42% stake as well as the entire holding of Gutsche Family Investments, valuing Africa’s largest Coca-Cola bottler at approximately $3.4 billion.

This acquisition elevates Coca-Cola HBC to the position of the world’s second-largest Coca-Cola bottling partner by volume, behind Coca-Cola FEMSA. It also significantly increases the company’s presence in Africa by adding operations in 14 new countries. According to JP Morgan, Coca-Cola HBC will now handle nearly two-thirds of all Coca-Cola beverage volumes in Africa and serve over 50% of the continent’s population. This includes major beverage brands such as Fanta, Sprite, and Monster.

Coca-Cola HBC CEO Zoran Bogdanovic described the acquisition as a growth-focused move, reinforcing the company’s commitment to Africa’s long-term consumer potential. “This acquisition is about growth,” Bogdanovic said, noting Africa’s youthful demographics and increasing demand for beverages as key factors in the expansion strategy.

Henrique Braun, Chief Operating Officer of The Coca-Cola Company, praised Coca-Cola HBC as a "strong and valued bottler" that is well positioned to lead CCBA into its next phase. The Coca-Cola Company, which owns around 23% of Coca-Cola HBC, will retain a 25% stake in CCBA for now, but Coca-Cola HBC has secured an option to acquire the remaining stake within six years.

To deepen its connection to local markets, Coca-Cola HBC also announced plans to seek a secondary listing on the Johannesburg Stock Exchange (JSE), marking a significant milestone in its long-term commitment to the continent.

The acquisition also comes at a time when Coca-Cola HBC is navigating shifting global dynamics. The company exited Russia in 2022, losing one of its largest markets, and is looking to offset those lost volumes with growth in emerging markets. Africa’s rising demand and economic development offer a timely and strategic opportunity for Coca-Cola HBC to rebalance its portfolio and drive future earnings.

Despite reporting a 5% rise in third-quarter organic revenue, the company’s London-listed shares dropped as much as 4.7% before recovering slightly to trade down 1.2% following the announcement. Analysts attribute the dip to lingering investor concerns about inflation, global trade tensions, and foreign exchange risks.

The landmark deal is one of the largest ever in Africa’s consumer goods sector. Rothschild served as the sole adviser to Coca-Cola Company, while Goldman Sachs and UBS advised Coca-Cola HBC. Nomura acted as the exclusive adviser to Gutsche Family Investments.