Coca-Cola HBC Buys Majority Stake in African Bottling Business for $2.6 Billion

Post by : Saif Nasser

Swiss-based bottler Coca-Cola HBC has agreed to buy a 75% stake in Coca-Cola Beverages Africa (CCBA) for $2.6 billion, marking a major expansion of its presence on the African continent. The move makes Coca-Cola HBC the world’s second-largest Coca-Cola bottler by volume.

Under the deal, Coca-Cola HBC will acquire the U.S.-based Coca-Cola company’s 42% stake in CCBA and the entire holding of Gutsche Family Investments. The total deal values CCBA at $3.4 billion. Coca-Cola HBC also has an option to buy the remaining 25% of CCBA within the next six years.

CCBA, founded in 2014, is a major bottler in Africa, accounting for around 40% of Coca-Cola beverage volume sold on the continent. Its brands include Fanta, Sprite, and Monster. The acquisition will expand Coca-Cola HBC’s footprint into 14 new African markets and tap into growing demand from younger consumers.

“This acquisition will help usher in the next chapter of growth for CCBA,” said Coca-Cola Chief Operating Officer Henrique Braun. Atlanta-based Coca-Cola owns about 23% of Coca-Cola HBC, which is already listed on the London and Athens stock exchanges.

Coca-Cola HBC also plans a secondary listing on the Johannesburg Stock Exchange as part of the deal. The company has decided to cancel its share buyback program immediately.

The news comes amid moderate financial results. Coca-Cola HBC reported a 5% rise in third-quarter organic revenue, down from 13.9% growth in the same period last year, reflecting weaker consumer sentiment. Despite this, the company still expects 2025 organic revenue growth to reach the top end of its 6% to 8% target range, supported by price increases.

Following the announcement, Coca-Cola HBC shares fell 4.2% to 3,390 pence at 0710 GMT, leading losses on the FTSE 100 index.

This acquisition is seen as a strategic move to strengthen Coca-Cola HBC’s global position and secure long-term growth in Africa, a region with expanding young populations and rising demand for beverages.