The local competition authority in South Africa has recommended approval of Coca-Cola HBC's planned acquisition of Coca-Cola Beverages Africa.
UK-listed Coca-Cola HBC strikes a deal in October To purchase a combined 75% stake in Coca-Cola Beverages Africa (CCBA) from The Coca-Cola Company and Gutsche Family Investments for $2.6 billion.
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In a statement yesterday (July 13), the Competition Commission of South Africa (CCSA) said it has recommended that the country's competition tribunal approve the proposed transaction.
“The Commission is of the view that the proposed transaction is not likely to reduce or prevent competition in any market,” the CCSA said.
CCSA said, due to the “public interest aspects” of the proposed deal, both parties have agreed to terms, including not making any jobs redundant in South Africa following the combination of the two companies “for a moratorium period”.
When asked, a spokesperson for the watchdog declined to say how long the moratorium period would last. just drink. “This information is classified as confidential at this stage,” he said.
Both companies have also pledged to “invest in developing the downstream distribution and retail aspects of their South African businesses,” CCSA said.
He has also committed to pursue the secondary listing of Coca-Cola HBC on the Johannesburg Stock Exchange. A CCSA spokesperson said a time period has been set for the move, although this is also “confidential”.
The deal still needs to be approved by the competition tribunal. The spokesperson said large mergers are usually heard after referral to the CCSA. After that a decision comes.
Coca-Cola HBC said in October that the acquisition would “materially expand” its presence in Africa, bringing the business into 14 more markets on the continent, such as South Africa, Ethiopia and Kenya.