South Africa competition watchdog backs Coca-Cola HBC’s acquisition of Coca-Cola Beverages Africa

SOUTH AFRICA – South Africa’s Competition Commission has recommended approval of Coca-Cola HBC’s proposed US$2.6 billion acquisition of Coca-Cola Beverages Africa (CCBA), bringing the landmark transaction a step closer to completion. 

The UK-listed bottler agreed in October to acquire a combined 75% stake in CCBA from The Coca-Cola Company and Gutsche Family Investments. The acquisition is expected to significantly expand Coca-Cola HBC’s presence across the African beverage market. 

In a statement issued on July 13, the Competition Commission of South Africa (CCSA) said it had recommended that the country’s Competition Tribunal approve the proposed merger. 

According to the commission, “The Commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market.” 

The commission noted that the recommendation is subject to a number of public interest commitments agreed upon by both companies. Among the key conditions is a pledge that there will be no job redundancies in South Africa during a defined moratorium period following completion of the transaction. 

A spokesperson for the commission declined to disclose the duration of the moratorium, stating that the information remains confidential at this stage. 

In addition to the employment commitment, Coca-Cola HBC and CCBA have agreed to invest in strengthening the downstream distribution and retail segments of their South African operations.  

The companies have also committed to pursuing a secondary inward listing of Coca-Cola HBC on the Johannesburg Stock Exchange (JSE), although the timeline for the listing has not been disclosed. 

The proposed acquisition must still receive final approval from South Africa’s Competition Tribunal before it can be completed. Large mergers in the country typically undergo a tribunal hearing after being referred by the Competition Commission, with the tribunal issuing the final ruling. 

When announcing the transaction in October, Coca-Cola HBC said the acquisition would materially strengthen its African footprint by adding 14 new markets, including South Africa, Ethiopia and Kenya, to its existing operations. 

The acquisition will substantially expand the Swiss-based bottler’s presence across the continent, complementing its established operations in Europe and parts of Asia. 

CCBA was created through the merger of several Coca-Cola bottling businesses across Africa and has grown into one of the continent’s largest bottlers, supplying beverages across numerous sub-Saharan African markets.  

The proposed transaction also reflects the ongoing consolidation of the global Coca-Cola bottling system as regional bottlers seek greater scale and operational efficiency in emerging markets. 

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