Coca‑Cola HBC AG, the world’s third‑largest Coca‑Cola bottler, has announced an agreement to acquire a controlling 75% stake in Coca‑Cola Beverages Africa (CCBA).
The deal, valued at Sh335.92 billion ($2.6 billion), was jointly revealed with The Coca‑Cola Company and Gutsche Family Investments (GFI).
The transaction positions Coca‑Cola HBC as a dominant force in Africa’s non‑alcoholic ready‑to‑drink market. Once completed, it will elevate the company to the world’s second‑largest Coca‑Cola bottler by volume.
Transaction Details and Valuation
The agreement values CCBA at Sh439.28 billion ($3.4 billion). Coca‑Cola HBC will acquire 41.52% of Coca‑Cola’s stake and the entire 33.48% held by GFI. Completion is targeted by the end of 2026, with Coca‑Cola HBC retaining an option to purchase the remaining 25% owned by Coca‑Cola within six years, paving the way for full ownership.
Expansion Across Africa
Coca‑Cola HBC currently operates in 29 countries across Europe and Africa, including Nigeria and Egypt. With this acquisition, the company will add 14 African markets to its portfolio, representing two‑thirds of Africa’s Coca‑Cola system volume and serving more than half of the continent’s population.
Anastassis G. David, Chairman of Coca‑Cola HBC, described the deal as a milestone:
“For decades, we have invested to unlock Africa’s extraordinary potential. We look forward to accelerating this positive momentum with CCBA to deliver lasting value for our stakeholders and make a positive impact in the communities we serve.”
Coca‑Cola’s Re‑Franchising Strategy
The agreement supports Coca‑Cola’s global re‑franchising strategy, which reduces direct ownership in bottling operations. Since 2015, Coca‑Cola’s bottling investments have dropped from 52% to 13% of consolidated net revenue. This deal is expected to lower that figure further to around 5%.
Henrique Braun, Executive Vice President and Chief Operating Officer of The Coca‑Cola Company, emphasized the strategic alignment:
“Coca‑Cola HBC is a trusted and important bottler and will play a key role in CCBA’s next phase of growth. Like Coca‑Cola HBC, we see tremendous opportunity for growth and value creation in Africa.”
Regulatory Scrutiny and Market Impact
The acquisition remains subject to regulatory and antitrust approvals. Regional competition regulators have launched a formal inquiry into the proposed majority takeover, with Kenya emerging as a focal point due to CCBA’s extensive local footprint in manufacturing, packaging, and distribution.
Concerns include potential market concentration, reduced competition, and the bargaining power of a dominant bottling network over retailers and agricultural suppliers. Regulators will assess whether the deal could negatively affect smaller beverage players or consumer pricing.
CCBA’s Strategic Role
Formed in 2016 through the consolidation of The Coca‑Cola Company, SABMiller, and GFI bottling operations, CCBA is headquartered in Johannesburg and operates in 14 African countries. It accounts for approximately 40% of Coca‑Cola’s product volume across the continent.
A successful acquisition would deepen Coca‑Cola HBC’s presence in Eastern and Southern Africa, leveraging CCBA’s established manufacturing and logistics infrastructure.
Secondary Listing in Johannesburg
Coca‑Cola HBC, currently listed in London and Athens, plans to pursue a secondary listing on the Johannesburg Stock Exchange. This move underscores the company’s long‑term commitment to Africa and its intention to integrate more closely with regional capital markets.
Long‑Term Outlook
If completed, the acquisition will reshape Coca‑Cola’s bottling structure across Africa, consolidating operations under Coca‑Cola HBC. The deal promises operational efficiencies, supply‑chain improvements, and expanded market reach, while also raising important questions about competition and consumer impact.
