Coca-Cola HBC AG, currently the world’s third-largest Coca-Cola bottler, has agreed to acquire a controlling 75% stake in Coca-Cola Beverages Africa (CCBA). The deal, worth Sh335.92 billion ($2.6 billion), was announced jointly with The Coca-Cola Company and Gutsche Family Investments (GFI).
It is expected to position Coca-Cola HBC as the dominant force in Africa’s non-alcoholic ready-to-drink market and the world’s second-largest Coca-Cola bottler by volume.
The transaction, which values the entirety of CCBA at an equity value of Sh439.28 billion ($3.4 billion), involves Coca-Cola HBC purchasing 41.52% of Coca-Cola’s stake and the entire 33.48% held by GFI.
The acquisition is targeted for completion by the end of 2026 and includes an option for Coca-Cola HBC to acquire the remaining 25% still owned by Coca-Cola within a six-year period, paving the way for full ownership.
Coca-Cola HBC, which already operates in 29 countries across Europe and Africa (including Nigeria and Egypt), will be adding 14 additional African markets to its operations. As a result, it will represent two-thirds of Africa’s total Coca-Cola system volume and serve over 50% of the continent’s population.
Anastassis G. David, Chairman of the Board of Coca-Cola HBC, called the deal a major milestone for the company, solidifying its long-term commitment to Africa. “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,” he said.
This agreement also supports Coca-Cola’s broader re-franchising strategy, which aims to reduce its ownership in bottling operations. Since 2015, Coca-Cola’s bottling investments as a percentage of consolidated net revenue have dropped from 52% to 13%, and this deal is expected to lower that further to around 5%.
By focusing more on brand building and marketing, Coca-Cola can entrust production and distribution to strategic partners. Henrique Braun, Executive Vice President and Chief Operating Officer of The Coca-Cola Company, emphasised the timing and strategic alignment of the deal.
“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. We appreciate Coca-Cola HBC’s vital role in The Coca-Cola Company system and ongoing investment in growing our business,” he said.
With a proven track record in key markets like Nigeria and Egypt, Coca-Cola HBC is well-positioned to lead CCBA into its next phase. The deal is still subject to regulatory and antitrust approvals.
Additionally, Coca-Cola HBC, which is currently listed in London and Athens, plans to pursue a secondary listing on the Johannesburg Stock Exchange.