AB-InBev divests SABMiller’s Coke businesses
On 21 December 2016, Coke and AB-InBev reached an agreement regarding the transition of AB-InBev’s 54.5 percent stake in Coca-Cola Beverages Africa (CCBA) for USD 3.15 billion, thus solving potentially conflicting interests. AB-InBev is a Pepsi bottler in Latin America and had inherited the stake in CCBA when it took over SABMiller.
CCBA includes the countries of South Africa, Namibia, Kenya, Uganda, Tanzania, Ethiopia, Mozambique, Ghana, Mayotte and Comoros.
In addition, the companies have reached an agreement in principle for The Coca-Cola Company to acquire AB-InBev’s interest in bottling operations in Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador and Honduras for an undisclosed amount.
The transactions are subject to the relevant regulatory and minority approvals and are expected to close by the end of 2017.
Coke plans to hold all of these territories temporarily until they can be refranchised to other partners.
With the sale of CCBA, AB- InBev has now raised about USD 27 billion from divesting parts of SABMiller, recouping about a quarter of the USD 100 billion plus it paid for SABMiller, reports say.