Coke bottler makes £5bn bid for Australian counterpart

Marco Green
October 27, 2020

Coca-Cola European Partners has offered to buy the ASX-listed Coca-Cola Amatil - which owns the New Zealand business - for A$12.75 per share valuing the deal at A$9.28 billion ($9.9b).

CCA said that once confirmatory due diligence is completed and other conditions are satisfied, including CCEP and TCCC reaching an agreement, then CCA intends to unanimously recommend the takeover to its independent shareholders.

The company said that including long-term incentive share rights, the implied equity deal value was A$9.28 billion.

The Coca-Cola Co logo is pictured at a bottling plant in Los Angeles on October 24, 2017.

Soft drink bottlers have been under pressure to consolidate amid slowing sales partly caused by the coronavirus pandemic and by consumers moving away from sugary drinks. Beyond fizzy staples like Coca-Cola, Fanta and Sprite, the Australian company has diversified into whiskey, rum and tequila, as well as beer and ground coffee.

"The proposed transaction would create a broader and more balanced footprint for CCEP whilst nearly doubling CCEP's consumer reach, with the aim of ultimately driving sustainable and faster growth, through geographic diversification and scale", the bottler said.

Amatil bottles and distributes Coca-Cola beverages in Australia, New Zealand, Indonesia, Papua New Guinea and other markets. The company changed its structure previous year around more geographically-focused units. The deal is subject to due diligence by Coca-Cola European Partners.

The proposal also includes the separate acquisition of CCA shares held indirectly by The Coca-Cola Company, which together comprises all of the issued share capital for CCA.

According to Bloomberg the cash offer would give Coca-Cola European Partners an even larger worldwide footprint and immediate scale in the Southern hemisphere. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. It was created from the three-way merger of Coca-Cola Enterprises Inc., Coca-Cola Iberian Partners and Germany's Coca-Cola Erfrischungsgetranke AG in 2015.

Other reports by Click Lancashire

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