Coca-Cola Europacific Partners (CCEP) and Aboitiz Equity Ventures Inc. (AEV) have agreed to jointly acquire Coca-Cola Beverages Philippines, Inc. (CCBPI) from The Coca-Cola Company (KO).
CCEP and AEV have completed due diligence and entered into a definitive agreement to acquire 100% of CCBPI from KO for $1.8 billion (€1.7 billion) on a debt-free, cash-free basis.
As per the terms of the acquisition, CCEP and AEV have agreed to a 60:40 ownership structure.
The deal, expected to close early next year, is subject to customary closing conditions, including receipt of required regulatory approvals.
The Acquisition
The acquisition will build on CCEP’s expansion into Australia, Pacific & Indonesia (API) in 2021, consolidate the partnership with its significant shareholder KO, and position CCEP as the world’s largest Coca-Cola bottler by revenue and volume.
It will also support its long-term growth strategy and focus on driving shareholder value.
Moreover, the acquisition allows CCEP to co-own an established business with profitability and growth prospects and is a step forward for the bottler as it seeks to create a more diverse footprint within its existing API business segment.
CCEP believes that the move aligns with the company’s aim of driving sustainable and stronger growth through diversification and scale, and underpins its mid-term strategic objectives.
Sustainable Packaging
In September, Coca-Cola Europacific Partners (CCEP) announced a further investment into carbon conversion technology, as it seeks to develop more sustainable packaging materials.
The bottler has teamed up with researchers from Swansea University on a project that will explore new ways to manufacture ethylene – one of the key components in plastic, such as the HDPE used to make plastic bottle caps.
