• Coca-Cola HBC to acquire a 75% stake in Coca-Cola Beverages Africa (CCBA) for $2.6 billion.

• The deal could rise to $3.4 billion if HBC exercises its option to buy the remaining 25%.

• The acquisition will expand HBC’s presence to 14 additional African countries and make it Coca-Cola’s second-largest global bottler.

Coca-Cola Hellenic Bottling Company (HBC) announced on October 21 an agreement to acquire a 75% stake in Coca-Cola Beverages Africa (CCBA), the continent’s largest bottler of The Coca-Cola Company (TCCC).

The $2.6 billion deal involves the purchase of 41.52% from Coca-Cola’s Atlanta headquarters and 33.48% from Gutsche Family Investments (GFI). The transaction, subject to regulatory and antitrust approvals, is expected to close by the end of 2026.

The Swiss-based bottler said the agreement includes a separate option allowing it to buy the remaining 25% of CCBA still owned by TCCC within six years after closing. If exercised, Coca-Cola HBC would pay a total of $3.4 billion to own 100% of the African bottler.

Following completion, Coca-Cola HBC will operate in 14 additional African countries, expanding beyond its existing operations in Nigeria and Egypt, where it has been active since 1951 and 2022 respectively.

“With this transaction, Coca-Cola HBC will represent two-thirds of the total Coca-Cola system volume in Africa and cover more than 50% of the continent’s population,” the company said in a statement.

The deal underscores HBC’s long-term commitment to Africa, which it described as a key growth engine. The combined group would have a pro forma 2024 volume of 4 billion unit cases, revenues of €14.1 billion, and an operating profit (EBIT) of €1.4 billion.

Currently the third-largest Coca-Cola bottler worldwide, HBC will move up to second place, behind Coca-Cola Europacific Partners (CCEP), which operates in 31 countries. The company also plans a secondary listing on the Johannesburg Stock Exchange (JSE) alongside its main listing in London.

This transaction aligns with The Coca-Cola Company’s global strategy to reduce direct ownership in bottling operations.

“In 2024, investments in bottling represented 13% of consolidated net revenue, down from 52% in 2015. Following this transaction, these investments are expected to fall to about 5%,” Coca-Cola said in a separate statement.

Coca-Cola HBC, which is 21.5% owned by The Coca-Cola Company, employs 33,000 people worldwide. In 2024, it reported net revenues of €10.7 billion ($12.4 billion) and a profit after tax of €820 million ($952 million).

The acquisition is set to further consolidate Coca-Cola HBC’s role as a cornerstone of Coca-Cola’s global bottling system and deepen its exposure to fast-growing African markets.

This article was initially published in French by Espoir Olodo

Adapted in English by Ange Jason Quenum