Sector News

SABMiller, Coca-Cola in pact over merger concerns

May 4, 2016
Food & Drink

SABMiller PLC, Coca-Cola Co. and Coca-Cola Sabco have reached an agreement with the South African government to address public interest concerns over the proposed merger of their bottling operations in Africa.

In November 2014, Coca-Cola, SABMiller and Coca-Cola Sabco, the African bottler of Coca-Cola Sabco, agreed to combine the bottling operations of their non-alcoholic ready-to-drink beverages businesses in southern and east Africa.

SABMiller said Wednesday that the merger parties have agreed a comprehensive set of commitments with the South African government to address concerns arising due to the merger. The concerns relate to employment, competition, localization of production and inputs used in the production of Coca-Cola products, economic empowerment and location of headquarters.

The commitments are expected to be recommended to the competition tribunal in connection with the bottling operation merger, SABMiller said.

By Tapan Panchal

Source: MarketWatch

comments closed

Related News

July 3, 2022

Heineken to take control of Long Chuan Zuan Co brewery

Food & Drink

Heineken has entered into an agreement with Sanyo Whisbih Group to take over majority ownership of the Long Chuan Zuan Co brewery in Taiwan. With this investment in local production, Heineken says it will become the first international brewer to have a brewery in the country.

July 3, 2022

Mondelēz to reopen damaged potato chip plant in Ukraine

Food & Drink

Mondelēz International plans to reopen a potato chip plant, located on the outskirts of Kyiv, that was damaged in the ongoing Russia-Ukraine conflict, according to Reuters. The facility, which was closed in March after suffering serious damage, will resume production while still undergoing repairs, a company spokesperson told Reuters.

July 3, 2022

Diageo to wind down operations in Russia

Food & Drink

Diageo has announced it will wind down its Russian business operations over the next six months, with plans to fully withdraw by the end of the year, according to Reuters. In March, the drinks giant suspended all exports of its products to Russia as well as the manufacturing of its beers, which are brewed locally under license by third parties.