October 21, (THEWILL) — Coca-Cola HBC AG (Coca-Cola Hellenic Bottling Company) has announced a $2.6 billion deal to acquire a 75% controlling stake in Coca-Cola Beverages Africa (CCBA), significantly expanding its footprint across the African continent. The acquisition involves purchasing 41.5% of CCBA from The Coca-Cola Company and 33.5% from Gutsche Family Investments, valuing CCBA at approximately $3.4 billion.
The move positions Coca-Cola HBC as the world’s second-largest Coca-Cola bottler by volume, adding operations in 14 African markets. CCBA currently accounts for roughly 40% of Coca-Cola system volumes sold across Africa, offering Coca-Cola HBC a strong platform to tap into a rapidly growing and youthful consumer base. Africa’s youth population is one of the largest in the world, with nearly 60% of the population under the age of 25, providing a strong demographic for beverage consumption.
The acquisition will be funded through $1.6 billion in cash and the issuance of shares representing 5.47% of Coca-Cola HBC’s enlarged share capital to Gutsche Family Investments. Completion is expected by the end of 2026, pending regulatory approvals.
In addition, Coca-Cola HBC has an option to acquire the remaining 25% stake in CCBA within six years, potentially allowing full ownership. The company also plans to pursue a secondary listing on the Johannesburg Stock Exchange to underscore its commitment to Africa.
Despite the strategic benefits, Coca-Cola HBC’s share price fell 4.2% following the announcement, reflecting market concerns over increased financial leverage.
The acquisition highlights Coca-Cola HBC’s ambition to strengthen its presence in Africa and leverage both companies’ expertise to drive sustainable growth in the region.
Ogochukwu Onwaeze
