Paul Jarvis and Janice Kew
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Deal comes just over two months after negotiations started
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Purchase price is “good” for Coca-Cola, analyst says
Coca-Cola Co. will pay $3.15 billion to buy
Anheuser-Busch InBev NV out of an African bottling joint venture after
the Budweiser brewer’s takeover of the U.S. beverage company’s partner
in the region.
Wednesday’s announcement comes just over two months after the companies said they were in negotiations following AB InBev’s completion of the takeover of SABMiller. Coca-Cola also agreed to buy AB InBev’s interest in bottling operations in Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador and Honduras for an undisclosed sum.
Wednesday’s announcement comes just over two months after the companies said they were in negotiations following AB InBev’s completion of the takeover of SABMiller. Coca-Cola also agreed to buy AB InBev’s interest in bottling operations in Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador and Honduras for an undisclosed sum.
The U.S. drinks maker is looking to speed up the refranchising of its bottling operations as it seeks to reduce exposure to facilities that are more capital-intensive and lower-margin.
Consumer and retail companies reported $306 billion in mergers this year, a 45 percent decline on the $556 billion in 2015, according to data compiled by Bloomberg. AB InBev agreed to buy SABMiller for about $100 billion, a deal included in last year’s figures.
Rothschild advised Coca Cola on the bottling deal and Lazard advised AB InBev.
The deal with AB InBev is subject to relevant regulatory and minority approvals and is expected to close by the end of 2017, the companies said. It was only this year that South Africa’s Competition Tribunal gave approval for SABMiller and Coca-Cola to combine their drinks companies’ bottling operations on the continent, ending an 18-month process.
AB InBev shares were little changed at 99.58 euros at 1:52 p.m. in Brussels trading
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