Coca-Cola Hellenic Bottling Company (Coca-Cola HBC) is on the verge of a significant expansion after announcing its plan to acquire a substantial stake in Coca-Cola Beverages Africa (CCBA).
The deal, valued at $3.4 billion, involves Coca-Cola HBC acquiring US-based Coca-Cola’s nearly 42 per cent stake in CCBA and the entire stake held by Gutsche Family Investments.
This strategic move is expected to be completed by late 2026 and will have far-reaching implications for the company’s presence in Africa and beyond.
Once the acquisition is finalised, Coca-Cola HBC will become the second-largest Coca-Cola bottler globally by volume, after Coca-Cola FEMSA.
This new status will not only enhance the company’s market position but also provide it with the scale and resources needed to drive growth and innovation across its operations.
The acquisition will significantly expand Coca-Cola HBC’s presence in Africa, where it will gain a stronger foothold in 14 markets.
These markets are characterised by growing consumer demand, driven largely by younger populations who are increasingly seeking out popular global brands.
The deal will also help Coca-Cola HBC mitigate rising cost pressures, including concerns over potential US tariffs that could impact its operations.
By expanding its footprint and increasing its production volumes, the company will be better positioned to absorb these costs and maintain its competitive edge in the market.
Jo’burg listing
In addition to the acquisition, Coca-Cola HBC has announced plans to pursue a secondary listing on the Johannesburg Stock Exchange. This move is expected to enhance the company’s visibility in the region and attract a broader base of investors, potentially providing additional capital to fuel future growth initiatives.
The secondary listing will also underscore the company’s commitment to transparency and good governance, which are likely to resonate positively with investors.
Option to acquire more
Another key aspect of the deal is the option Coca-Cola HBC will have to acquire Coca-Cola’s remaining 25 per cent stake in CCBA within six years of the deal’s closure.
This option provides the company with flexibility and the opportunity to further consolidate its ownership of CCBA, potentially leading to greater operational efficiencies and more streamlined decision-making processes.
Zero sugar
The announcement comes after Coca-Cola reported strong third-quarter results, driven by robust demand for its zero-sugar drinks and Fairlife in the US, as well as its soda brands in select international markets.
The success of these products has helped Coca-Cola maintain its momentum in a highly competitive beverage market, where consumers are increasingly seeking out healthier and more sustainable options.
For many, the acquisition of CCBA represents a major strategic opportunity for Coca-Cola HBC.
It will not only strengthen the company’s position in Africa but also enhance its global footprint, positioning it for long-term growth and success in the beverage industry.
