Coca-Cola HBC AG has announced plans to acquire a 75% stake in Coca-Cola Beverages Africa (CCBA) for $2.6 billion, marking one of its biggest expansion moves yet.
The transaction, which will combine two of the Coca-Cola system’s largest bottlers, aims to create the second-largest bottling partner globally by volume and cement Coca-Cola HBC’s presence across 14 additional African markets.
The deal will see Coca-Cola HBC — already active in Nigeria and Egypt — cover around two-thirds of the total Coca-Cola system volume on the continent and reach over half of Africa’s population.
The purchase is part of the company’s broader effort to consolidate operations and strengthen its foothold in high-growth, emerging markets.
Transaction expands footprint and strengthens distribution network
Coca-Cola HBC will buy the 75% stake in Johannesburg-based CCBA from The Coca-Cola Company (TCCC) and Gutsche Family Investments (GFI).
The deal values the entire equity of CCBA at roughly $3.4 billion and represents a significant step in the drinks giant’s ongoing strategy to simplify its global bottling structure.
With the acquisition, Coca-Cola HBC will add CCBA’s operations in 14 African countries to its own, building on its existing base in Nigeria and Egypt.
The company said CCBA currently accounts for about 40% of the Coca-Cola system’s total volume in Africa.
The enlarged business will therefore represent about two-thirds of the Coca-Cola system’s volume across the continent, expanding reach into key growth markets including South Africa, Kenya, Ethiopia, and Mozambique.
The acquisition also marks TCCC’s continuing shift away from direct ownership of bottling assets.
Earlier this year, the US-based company completed the sale of part of its Indian bottling business, further reducing its operational footprint and refocusing on brand ownership and concentrate supply.
Financing structure and secondary listing plan
To fund the transaction, Coca-Cola HBC will issue new shares equal to 5.47% of its enlarged share capital to GFI and raise the cash component through a €2.5 billion bridge financing facility.
The company has also secured an option to acquire TCCC’s remaining 25% stake in CCBA within six years of completion.
As part of the agreement, Coca-Cola HBC intends to launch a secondary listing on the Johannesburg Stock Exchange (JSE) to “underpin its commitment to South Africa and the continent.”
The listing will give African investors a direct route to own shares in the enlarged group, which will remain headquartered in Switzerland and listed on the London Stock Exchange.
The company expects the deal to be accretive to earnings per share in low single digits in the first full year after completion, though it acknowledged that leverage will rise and existing shareholders will face some dilution from the share issuance.
The transaction is subject to customary closing conditions and regulatory approvals, including antitrust clearance across multiple jurisdictions.
Africa’s growth potential and integration challenges
Coca-Cola HBC has described Africa as one of its most promising regions for long-term growth, driven by favourable demographics and rising urban consumption of non-alcoholic ready-to-drink beverages.
Per-capita consumption levels in many African markets remain well below global averages, offering a large runway for expansion in the years ahead.
The company believes combining its existing scale in North and West Africa with CCBA’s strong distribution network in Southern and Eastern Africa will unlock efficiencies and support innovation across product categories.
However, analysts note that integration risks, currency volatility, and regulatory complexities could affect how quickly synergies are realised.
The agreement was announced on 21 October 2025, and both companies expect to close the deal by the end of 2026.
Once finalised, the combined entity will represent one of the largest consumer goods platforms on the continent and a core driver of Coca-Cola HBC’s global earnings growth over the next decade.
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