Coca-Cola’s R41.9 billion megadeal in South Africa gets the green light

A merger involving Coca-Cola’s African bottling business has received the green light from South Africa’s competition authorities.

This could result in the company being listed on the Johannesburg Stock Exchange, which could represent a R129 billion addition to the local bourse.

This deal, valued at $2.6 billion (R41.93 billion), dates back to 2024, when Coca-Cola HBC announced it would acquire a 75% stake in Coca-Cola Beverages Africa (CCBA).

The sellers are The Coca-Cola Company, the US-headquartered soft drink giant, and its holder, Gutsche Family Investments.

Coca-Cola HBC, formerly known as Coca-Cola Hellenic Bottling Company, is a major strategic partner of The Coca-Cola Company that operates across Europe, Nigeria, and Egypt.

Headquartered in Switzerland, it manufactures, packages, and distributes a range of beverages. It turns syrups and concentrates from The Coca-Cola Company into ready-to-drink products. 

CCBA is headquartered in Gqberha, South Africa, and is also an authorised bottler of the company’s soft drinks.

Coca-Cola HBC’s acquisition of 75% of CCBA will create Coca-Cola’s second-largest bottling partner for caffeinated soft drinks by volume.

Through the acquisition, Coca-Cola HBC will expand its operations to 14 additional African markets, allowing it to cover half the continent’s population.

On Friday, 11 September, South Africa’s Competition Tribunal announced that it has approved the merger, subject to conditions.

The Coca-Cola Company has committed to a potential initial public offering of CCBA, with a dual listing on the Johannesburg and Amsterdam stock exchanges.

Bloomberg reported that it may seek an $8 billion (R129.09 billion) valuation for the business.