Sector News

South Africa approves SABMiller, Coca-Cola bottling deal

May 12, 2016
Food & Drink

SABMiller PLC Tuesday said the South African Competition Tribunal has approved a deal to combine the African soft drink operations of SABMiller, the Coca-Cola Company and Gutsche Family Investments, the South African owners of local bottler Coca-Cola Sabco.

The manufacturer, distributor and seller of beverages said the approval of the newly created Coca-Cola Beverages Africa will create the continent’s largest soft-drink beverage operation.

SABMiller said the merger parties have agreed to invest 800 million South African rand ($56.1 million) to support enterprise development for two groups of entrepreneurs. They will also create a ZAR400 million fund for enterprise development in the agriculture value chain, to support and train historically disadvantaged developing farmers and small suppliers, SABMiller said.

The parties will also make a ZAR400 million investment to develop downstream distribution and retail aspects of Coca- Cola Beverages South Africa, the company said.

Shares closed at 4217.50 pence valuing the company at 68.38 billion pounds ($100.06 billion).

By Olga Cotaga

Source: Nasdaq

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